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Is XCel Brands (XELB) Stock Undervalued Right Now?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company value investors might notice is XCel Brands (XELB - Free Report) . XELB is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 4.67 right now. For comparison, its industry sports an average P/E of 12.65. XELB's Forward P/E has been as high as 9.15 and as low as 2.69, with a median of 4.69, all within the past year.

Investors should also note that XELB holds a PEG ratio of 0.47. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. XELB's industry currently sports an average PEG of 1.23. XELB's PEG has been as high as 0.91 and as low as 0.27, with a median of 0.47, all within the past year.

These are just a handful of the figures considered in XCel Brands's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that XELB is an impressive value stock right now.


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