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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
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 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 value investors might notice is Best Buy (BBY - Free Report) . BBY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 8.10 right now. For comparison, its industry sports an average P/E of 14.43. Over the past 52 weeks, BBY's Forward P/E has been as high as 15.05 and as low as 8.10, with a median of 12.45.
Investors should also note that BBY holds a PEG ratio of 1.06. 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. BBY's industry has an average PEG of 1.27 right now. Over the past 52 weeks, BBY's PEG has been as high as 1.73 and as low as 0.98, with a median of 1.44.
Another valuation metric that we should highlight is BBY's P/B ratio of 3.84. 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 4.86. BBY's P/B has been as high as 7.70 and as low as 3.84, with a median of 5.87, over the past year.
Finally, we should also recognize that BBY has a P/CF ratio of 5.76. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. BBY's P/CF compares to its industry's average P/CF of 8.06. Within the past 12 months, BBY's P/CF has been as high as 10.26 and as low as 5.76, with a median of 8.48.
These are just a handful of the figures considered in Best Buy'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 BBY is an impressive value stock right now.
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Should Value Investors Buy Best Buy (BBY) Stock?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
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 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 value investors might notice is Best Buy (BBY - Free Report) . BBY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 8.10 right now. For comparison, its industry sports an average P/E of 14.43. Over the past 52 weeks, BBY's Forward P/E has been as high as 15.05 and as low as 8.10, with a median of 12.45.
Investors should also note that BBY holds a PEG ratio of 1.06. 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. BBY's industry has an average PEG of 1.27 right now. Over the past 52 weeks, BBY's PEG has been as high as 1.73 and as low as 0.98, with a median of 1.44.
Another valuation metric that we should highlight is BBY's P/B ratio of 3.84. 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 4.86. BBY's P/B has been as high as 7.70 and as low as 3.84, with a median of 5.87, over the past year.
Finally, we should also recognize that BBY has a P/CF ratio of 5.76. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. BBY's P/CF compares to its industry's average P/CF of 8.06. Within the past 12 months, BBY's P/CF has been as high as 10.26 and as low as 5.76, with a median of 8.48.
These are just a handful of the figures considered in Best Buy'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 BBY is an impressive value stock right now.