Are Investors Undervaluing PVH (PVH) Right Now?
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.
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.
One company to watch right now is PVH (PVH). PVH is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 7.70, which compares to its industry's average of 12.69. Over the past year, PVH's Forward P/E has been as high as 11.27 and as low as 6.35, with a median of 8.11.
Investors will also notice that PVH has a PEG ratio of 0.58. 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. PVH's PEG compares to its industry's average PEG of 1.31. Over the last 12 months, PVH's PEG has been as high as 1.10 and as low as 0.47, with a median of 0.55.
Value investors will likely look at more than just these metrics, but the above data helps show that PVH is likely undervalued currently. And when considering the strength of its earnings outlook, PVH sticks out at as one of the market's strongest value stocks.
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PVH Corp. (PVH) : Free Stock Analysis Report
