Are Investors Undervaluing Scholastic (SCHL) 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.
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.
One company value investors might notice is Scholastic (SCHL). SCHL is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
Investors should also recognize that SCHL has a P/B ratio of 1.17. The P/B is a method of comparing a stock's market value to 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 1.48. Within the past 52 weeks, SCHL's P/B has been as high as 1.34 and as low as 0.92, with a median of 1.12.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. SCHL has a P/S ratio of 0.73. This compares to its industry's average P/S of 0.85.
These are just a handful of the figures considered in Scholastic's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that SCHL is an impressive value stock right now.
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Scholastic Corporation (SCHL) : Free Stock Analysis Report
