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Is Buckle (BKE) Stock Undervalued Right Now?

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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.

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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

Buckle (BKE - Free Report) is a stock many investors are watching right now. BKE is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.

Another notable valuation metric for BKE is its P/B ratio of 2.30. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 3.35. Over the past 12 months, BKE's P/B has been as high as 3.37 and as low as 1.59, with a median of 2.45.

Finally, investors will want to recognize that BKE has a P/CF ratio of 8.18. 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. BKE's P/CF compares to its industry's average P/CF of 8.59. BKE's P/CF has been as high as 10.92 and as low as 4.65, with a median of 7.95, 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 Buckle is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BKE feels like a great value stock at the moment.


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