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Is Tilly's (TLYS) 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 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 Tilly's (TLYS - Free Report) . TLYS is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value.

Investors should also note that TLYS holds a PEG ratio of 1.16. 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. TLYS's industry has an average PEG of 1.26 right now. TLYS's PEG has been as high as 1.31 and as low as 0.84, with a median of 1.11, all within the past year.

Another notable valuation metric for TLYS is its P/B ratio of 1.90. 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. This stock's P/B looks attractive against its industry's average P/B of 3.35. Over the past year, TLYS's P/B has been as high as 2.35 and as low as 1.32, with a median of 1.82.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. TLYS has a P/S ratio of 0.44. This compares to its industry's average P/S of 0.48.

Finally, our model also underscores that TLYS has a P/CF ratio of 7.58. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 8.59. Over the past year, TLYS's P/CF has been as high as 8.18 and as low as 4.91, with a median of 6.91.

These are just a handful of the figures considered in Tilly's'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 TLYS is an impressive value stock right now.


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