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Is Buckle (BKE) Stock Undervalued Right Now?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

Buckle (BKE - Free Report) is a stock many investors are watching right now. BKE is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 10.60, which compares to its industry's average of 13.26. BKE's Forward P/E has been as high as 16.31 and as low as 10.20, with a median of 13.03, all within the past year.

Another valuation metric that we should highlight is BKE's P/B ratio of 2.11. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. BKE's current P/B looks attractive when compared to its industry's average P/B of 3.75. BKE's P/B has been as high as 3.47 and as low as 2.01, with a median of 2.74, over the past year.

Finally, investors should note that BKE has a P/CF ratio of 6.74. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. BKE's P/CF compares to its industry's average P/CF of 7.94. BKE's P/CF has been as high as 10.92 and as low as 6.43, with a median of 8.55, all within the past year.

These are only a few of the key metrics included in Buckle's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, BKE looks like an impressive value stock at the moment.


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