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Are Investors Undervaluing Caleres Inc. (CAL) Right Now?

Zacks Equity Research

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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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.

Caleres Inc. (CAL) is a stock many investors are watching right now. CAL is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.

CAL is also sporting a PEG ratio of 1.23. 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. CAL's PEG compares to its industry's average PEG of 1.79.

Finally, our model also underscores that CAL has a P/CF ratio of 11.66. 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 23.84. CAL's P/CF has been as high as 21.59 and as low as 7.66, with a median of 12.24, all within the past year.

Value investors will likely look at more than just these metrics, but the above data helps show that Caleres Inc. Is likely undervalued currently. And when considering the strength of its earnings outlook, CAL sticks out at as one of the market's strongest value stocks.


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