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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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 to watch right now is Signet (SIG - Free Report) . SIG is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 5.18. This compares to its industry's average Forward P/E of 10.83. Over the past 52 weeks, SIG's Forward P/E has been as high as 14.04 and as low as 3.67, with a median of 7.44.
Investors will also notice that SIG has a PEG ratio of 0.80. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. SIG's PEG compares to its industry's average PEG of 1.12. Over the last 12 months, SIG's PEG has been as high as 2.16 and as low as 0.57, with a median of 1.14.
We should also highlight that SIG has a P/B ratio of 0.78. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. SIG's current P/B looks attractive when compared to its industry's average P/B of 2.11. Within the past 52 weeks, SIG's P/B has been as high as 2.35 and as low as 0.53, with a median of 1.01.
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. SIG has a P/S ratio of 0.13. This compares to its industry's average P/S of 0.31.
These are just a handful of the figures considered in Signet'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 SIG is an impressive value stock right now.
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Should Value Investors Buy Signet (SIG) Stock?
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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 to watch right now is Signet (SIG - Free Report) . SIG is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 5.18. This compares to its industry's average Forward P/E of 10.83. Over the past 52 weeks, SIG's Forward P/E has been as high as 14.04 and as low as 3.67, with a median of 7.44.
Investors will also notice that SIG has a PEG ratio of 0.80. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. SIG's PEG compares to its industry's average PEG of 1.12. Over the last 12 months, SIG's PEG has been as high as 2.16 and as low as 0.57, with a median of 1.14.
We should also highlight that SIG has a P/B ratio of 0.78. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. SIG's current P/B looks attractive when compared to its industry's average P/B of 2.11. Within the past 52 weeks, SIG's P/B has been as high as 2.35 and as low as 0.53, with a median of 1.01.
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. SIG has a P/S ratio of 0.13. This compares to its industry's average P/S of 0.31.
These are just a handful of the figures considered in Signet'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 SIG is an impressive value stock right now.