Are Investors Undervaluing These Retail-Wholesale Stocks Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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.
Capri Holdings (CPRI) is a stock many investors are watching right now. CPRI is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 8.12 right now. For comparison, its industry sports an average P/E of 11.94. Over the past 52 weeks, CPRI's Forward P/E has been as high as 32.82 and as low as 7.01, with a median of 11.16.
We should also highlight that CPRI has a P/B ratio of 2.86. The P/B ratio is used to compare a stock's market value with 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 3.47. Within the past 52 weeks, CPRI's P/B has been as high as 4.17 and as low as 2.46, with a median of 3.54.
Finally, investors should note that CPRI has a P/CF ratio of 7.30. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 12.01. Over the past year, CPRI's P/CF has been as high as 19.05 and as low as -37.56, with a median of 9.98.
Another great Retail - Apparel and Shoes stock you could consider is Nordstrom (JWN), which is a # 1 (Strong Buy) stock with a Value Score of A.
Nordstrom is currently trading with a Forward P/E ratio of 8.26 while its PEG ratio sits at 1.38. Both of the company's metrics compare favorably to its industry's average P/E of 11.94 and average PEG ratio of 0.54.
JWN's Forward P/E has been as high as 30.26 and as low as 6.97, with a median of 14.71. During the same time period, its PEG ratio has been as high as 5.04, as low as 1.16, with a median of 2.45.
Furthermore, Nordstrom holds a P/B ratio of 7.47 and its industry's price-to-book ratio is 3.47. JWN's P/B has been as high as 41.27, as low as 5.36, with a median of 16.68 over the past 12 months.
These are only a few of the key metrics included in Capri Holdings and Nordstrom strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, CPRI and JWN look like an impressive value stock at the moment.
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Capri Holdings Limited (CPRI) : Free Stock Analysis Report
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