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Is J.Jill (JILL) Stock Undervalued Right Now?

Zacks Equity Research

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 value investors might notice is J.Jill (JILL). JILL is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 5.39, while its industry has an average P/E of 10.08. Over the past 52 weeks, JILL's Forward P/E has been as high as 10.26 and as low as 2.37, with a median of 7.41.

Investors will also notice that JILL has a PEG ratio of 0.49. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. JILL's PEG compares to its industry's average PEG of 0.99. Over the last 12 months, JILL's PEG has been as high as 0.97 and as low as 0.22, with a median of 0.69.

Investors should also recognize that JILL has a P/B ratio of 1.07. 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. JILL's current P/B looks attractive when compared to its industry's average P/B of 2.99. Over the past year, JILL's P/B has been as high as 1.47 and as low as 0.35, with a median of 1.12.

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


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