Is J.Jill (JILL) Stock Undervalued 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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is J.Jill (JILL). JILL is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 8.62 right now. For comparison, its industry sports an average P/E of 13.56. Over the past 52 weeks, JILL's Forward P/E has been as high as 11.37 and as low as -10.08, with a median of 8.04.
Finally, investors should note that JILL has a P/CF ratio of 6.41. 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 stock's P/CF looks attractive against its industry's average P/CF of 12.04. Over the past year, JILL's P/CF has been as high as 6.66 and as low as 2.93, with a median of 4.78.
Investors could also keep in mind Urban Outfitters (URBN), an Retail - Apparel and Shoes stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.
Shares of Urban Outfitters currently holds a Forward P/E ratio of 9.67, and its PEG ratio is 0.41. In comparison, its industry sports average P/E and PEG ratios of 13.56 and 0.81.
URBN's Forward P/E has been as high as 16.59 and as low as 9.54, with a median of 11.51. During the same time period, its PEG ratio has been as high as 0.92, as low as 0.40, with a median of 0.64.
Urban Outfitters also has a P/B ratio of 1.52 compared to its industry's price-to-book ratio of 3.28. Over the past year, its P/B ratio has been as high as 1.79, as low as 1.07, with a median of 1.42.
Value investors will likely look at more than just these metrics, but the above data helps show that J.Jill and Urban Outfitters are likely undervalued currently. And when considering the strength of its earnings outlook, JILL and URBN sticks out as one of the market's strongest value stocks.
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J.Jill, Inc. (JILL) : Free Stock Analysis Report
Urban Outfitters, Inc. (URBN) : Free Stock Analysis Report
