Is The Childrens Place (PLCE) a Great Value Stock 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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 The Childrens Place (PLCE). PLCE is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 4.19. This compares to its industry's average Forward P/E of 9.64. Over the past year, PLCE's Forward P/E has been as high as 23.02 and as low as 3.97, with a median of 7.33.
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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. PLCE has a P/S ratio of 0.34. This compares to its industry's average P/S of 0.42.
Finally, investors will want to recognize that PLCE has a P/CF ratio of 2.86. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 6.31. Over the past year, PLCE's P/CF has been as high as 27.41 and as low as 2.70, with a median of 7.20.
Another great Retail - Apparel and Shoes stock you could consider is Shoe Carnival (SCVL), which is a # 1 (Strong Buy) stock with a Value Score of A.
Additionally, Shoe Carnival has a P/B ratio of 1.93 while its industry's price-to-book ratio sits at 2.86. For SCVL, this valuation metric has been as high as 3.12, as low as 1.74, with a median of 2.50 over the past year.
These are only a few of the key metrics included in The Childrens Place and Shoe Carnival strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, PLCE and SCVL look like an impressive value stock at the moment.
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The Children's Place, Inc. (PLCE) : Free Stock Analysis Report
Shoe Carnival, Inc. (SCVL) : Free Stock Analysis Report
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