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Is Designer Brands (DBI) a Great Value Stock 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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
One stock to keep an eye on is Designer Brands (DBI - Free Report) . DBI is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 8.25, while its industry has an average P/E of 10.94. DBI's Forward P/E has been as high as 15.17 and as low as 6.84, with a median of 10.40, all within the past year.
We also note that DBI holds a PEG ratio of 0.55. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. DBI's industry has an average PEG of 1.11 right now. Over the past 52 weeks, DBI's PEG has been as high as 1.69 and as low as 0.46, with a median of 1.16.
Another valuation metric that we should highlight is DBI's P/B ratio of 1.78. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 3.01. DBI's P/B has been as high as 2.87 and as low as 1.41, with a median of 1.98, over the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. DBI has a P/S ratio of 0.35. This compares to its industry's average P/S of 0.5.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Designer Brands is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DBI feels like a great value stock at the moment.
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Is Designer Brands (DBI) a Great Value Stock Right Now?
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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
One stock to keep an eye on is Designer Brands (DBI - Free Report) . DBI is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 8.25, while its industry has an average P/E of 10.94. DBI's Forward P/E has been as high as 15.17 and as low as 6.84, with a median of 10.40, all within the past year.
We also note that DBI holds a PEG ratio of 0.55. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. DBI's industry has an average PEG of 1.11 right now. Over the past 52 weeks, DBI's PEG has been as high as 1.69 and as low as 0.46, with a median of 1.16.
Another valuation metric that we should highlight is DBI's P/B ratio of 1.78. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 3.01. DBI's P/B has been as high as 2.87 and as low as 1.41, with a median of 1.98, over the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. DBI has a P/S ratio of 0.35. This compares to its industry's average P/S of 0.5.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Designer Brands is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DBI feels like a great value stock at the moment.