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Is Buckle (BKE) a Great Value Stock 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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

Buckle (BKE - Free Report) is a stock many investors are watching right now. BKE is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 10.55, which compares to its industry's average of 14.34. Over the last 12 months, BKE's Forward P/E has been as high as 16.31 and as low as 10.20, with a median of 13.02.

Investors should also recognize that BKE has a P/B ratio of 2.10. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 3.88. Over the past 12 months, BKE's P/B has been as high as 3.47 and as low as 2.01, with a median of 2.74.

Finally, our model also underscores that BKE has a P/CF ratio of 6.69. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 8.22. BKE's P/CF has been as high as 10.92 and as low as 6.43, with a median of 8.53, all within the past year.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Buckle is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BKE feels like a great value stock at the moment.


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