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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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is Target (TGT - Free Report) . TGT is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 14.10 right now. For comparison, its industry sports an average P/E of 21.45. Over the past 52 weeks, TGT's Forward P/E has been as high as 16.16 and as low as 10.95, with a median of 13.97.
Another notable valuation metric for TGT is its P/B ratio of 3.83. 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. TGT's current P/B looks attractive when compared to its industry's average P/B of 10.07. Over the past 12 months, TGT's P/B has been as high as 4.21 and as low as 2.88, with a median of 3.66.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. TGT has a P/S ratio of 0.56. This compares to its industry's average P/S of 0.66.
Finally, investors should note that TGT has a P/CF ratio of 8.03. 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. TGT's P/CF compares to its industry's average P/CF of 20.29. Over the past year, TGT's P/CF has been as high as 8.53 and as low as 5.68, with a median of 7.60.
These are only a few of the key metrics included in Target'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, TGT looks like an impressive value stock at the moment.
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Is Target (TGT) a Great Value Stock Right Now?
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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is Target (TGT - Free Report) . TGT is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 14.10 right now. For comparison, its industry sports an average P/E of 21.45. Over the past 52 weeks, TGT's Forward P/E has been as high as 16.16 and as low as 10.95, with a median of 13.97.
Another notable valuation metric for TGT is its P/B ratio of 3.83. 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. TGT's current P/B looks attractive when compared to its industry's average P/B of 10.07. Over the past 12 months, TGT's P/B has been as high as 4.21 and as low as 2.88, with a median of 3.66.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. TGT has a P/S ratio of 0.56. This compares to its industry's average P/S of 0.66.
Finally, investors should note that TGT has a P/CF ratio of 8.03. 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. TGT's P/CF compares to its industry's average P/CF of 20.29. Over the past year, TGT's P/CF has been as high as 8.53 and as low as 5.68, with a median of 7.60.
These are only a few of the key metrics included in Target'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, TGT looks like an impressive value stock at the moment.