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Columbia Sportswear (COLM) is a Top-Ranked Value Stock: Should You Buy?

·2 min read

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.

Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.

Why Investors Should Pay Attention to This Value Stock

Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and discounted stocks.

Columbia Sportswear (COLM)

Headquartered in Portland, OR, Columbia Sportswear Company engages in the sourcing, marketing and distribution of outdoor and active lifestyle apparel, footwear, accessories and equipment in the U.S. and internationally.

COLM is a Zacks Rank #2 (Buy) stock, with a Value Style Score of B and VGM Score of B. Shares are currently trading at a forward P/E of 12.6X for the current fiscal year compared to the Textile - Apparel industry's P/E of 10X. Additionally, COLM has a PEG Ratio of 1.5 and a Price/Cash Flow ratio of 10.3X. Value investors should also note COLM's Price/Sales ratio of 1.4X.

Value investors don't just pay attention to a company's valuation ratios; positive earnings play a crucial role, too. One analyst revised their earnings estimate upwards in the last 60 days for fiscal 2022. The Zacks Consensus Estimate has increased $0.03 to $5.88 per share. COLM has an average earnings surprise of 169.6%.

Investors should take the time to consider COLM for their portfolios due to its solid Zacks Ranks, notable earnings and valuation metrics, and impressive Value and VGM Style Scores.


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