Is Kontoor Brands (KTB) Stock Undervalued 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
Kontoor Brands (KTB) is a stock many investors are watching right now. KTB is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 8.27, while its industry has an average P/E of 10.80. Over the last 12 months, KTB's Forward P/E has been as high as 11.64 and as low as 7.06, with a median of 8.95.
Finally, investors should note that KTB has a P/CF ratio of 10.06. 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 19.10. KTB's P/CF has been as high as 11.63 and as low as 6.65, with a median of 9.25, all within the past year.
Another great Textile - Apparel stock you could consider is PVH (PVH), which is a # 2 (Buy) stock with a Value Score of A.
PVH is currently trading with a Forward P/E ratio of 6.50 while its PEG ratio sits at 0.49. Both of the company's metrics compare favorably to its industry's average P/E of 10.80 and average PEG ratio of 1.02.
Over the last 12 months, PVH's P/E has been as high as 11.27, as low as 5.61, with a median of 8.11, and its PEG ratio has been as high as 1.10, as low as 0.47, with a median of 0.60.
PVH sports a P/B ratio of 0.86 as well; this compares to its industry's price-to-book ratio of 6.06. In the past 52 weeks, PVH's P/B has been as high as 1.22, as low as 0.59, with a median of 1.01.
These are only a few of the key metrics included in Kontoor Brands and PVH strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, KTB and PVH look like an impressive value stock at the moment.
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Kontoor Brands, Inc. (KTB) : Free Stock Analysis Report
PVH Corp. (PVH) : Free Stock Analysis Report
