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Should Value Investors Buy Sally Beauty (SBH) Stock?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
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 to watch right now is Sally Beauty (SBH - Free Report) . SBH is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 7.68. This compares to its industry's average Forward P/E of 13.21. Over the last 12 months, SBH's Forward P/E has been as high as 9.16 and as low as 5.37, with a median of 7.52.
Finally, investors should note that SBH has a P/CF ratio of 5.57. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 19.88. SBH's P/CF has been as high as 6.59 and as low as 3.84, with a median of 5.54, 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 Sally Beauty is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SBH feels like a great value stock at the moment.
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Should Value Investors Buy Sally Beauty (SBH) Stock?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
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 to watch right now is Sally Beauty (SBH - Free Report) . SBH is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 7.68. This compares to its industry's average Forward P/E of 13.21. Over the last 12 months, SBH's Forward P/E has been as high as 9.16 and as low as 5.37, with a median of 7.52.
Finally, investors should note that SBH has a P/CF ratio of 5.57. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 19.88. SBH's P/CF has been as high as 6.59 and as low as 3.84, with a median of 5.54, 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 Sally Beauty is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SBH feels like a great value stock at the moment.