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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.
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.
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.
Lowe's (LOW - Free Report) is a stock many investors are watching right now. LOW is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 19.20 right now. For comparison, its industry sports an average P/E of 20.64. LOW's Forward P/E has been as high as 21.38 and as low as 9.70, with a median of 17.68, all within the past year.
Investors should also note that LOW holds a PEG ratio of 1.24. 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. LOW's industry currently sports an average PEG of 1.60. Within the past year, LOW's PEG has been as high as 1.52 and as low as 0.68, with a median of 1.26.
Another valuation metric that we should highlight is LOW's P/B ratio of 57.98. 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 stock's P/B looks solid versus its industry's average P/B of 107.33. Over the past 12 months, LOW's P/B has been as high as 59.68 and as low as 23.76, with a median of 36.32.
Value investors will likely look at more than just these metrics, but the above data helps show that Lowe's is likely undervalued currently. And when considering the strength of its earnings outlook, LOW sticks out at as one of the market's strongest value stocks.
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Is Lowe's (LOW) Stock Undervalued 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.
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.
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.
Lowe's (LOW - Free Report) is a stock many investors are watching right now. LOW is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 19.20 right now. For comparison, its industry sports an average P/E of 20.64. LOW's Forward P/E has been as high as 21.38 and as low as 9.70, with a median of 17.68, all within the past year.
Investors should also note that LOW holds a PEG ratio of 1.24. 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. LOW's industry currently sports an average PEG of 1.60. Within the past year, LOW's PEG has been as high as 1.52 and as low as 0.68, with a median of 1.26.
Another valuation metric that we should highlight is LOW's P/B ratio of 57.98. 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 stock's P/B looks solid versus its industry's average P/B of 107.33. Over the past 12 months, LOW's P/B has been as high as 59.68 and as low as 23.76, with a median of 36.32.
Value investors will likely look at more than just these metrics, but the above data helps show that Lowe's is likely undervalued currently. And when considering the strength of its earnings outlook, LOW sticks out at as one of the market's strongest value stocks.