U.S. Markets closed
  • S&P Futures

    4,122.25
    -2.25 (-0.05%)
     
  • Dow Futures

    32,735.00
    -2.00 (-0.01%)
     
  • Nasdaq Futures

    13,018.75
    -12.75 (-0.10%)
     
  • Russell 2000 Futures

    1,913.10
    -1.50 (-0.08%)
     
  • Crude Oil

    90.35
    -0.15 (-0.17%)
     
  • Gold

    1,810.40
    -1.90 (-0.10%)
     
  • Silver

    20.50
    +0.02 (+0.11%)
     
  • EUR/USD

    1.0222
    +0.0004 (+0.0409%)
     
  • 10-Yr Bond

    2.7970
    +0.0320 (+1.16%)
     
  • Vix

    21.77
    +0.48 (+2.25%)
     
  • GBP/USD

    1.2081
    +0.0005 (+0.0375%)
     
  • USD/JPY

    135.0640
    -0.0520 (-0.0385%)
     
  • BTC-USD

    22,838.29
    -937.80 (-3.94%)
     
  • CMC Crypto 200

    530.74
    -26.61 (-4.77%)
     
  • FTSE 100

    7,488.15
    +5.78 (+0.08%)
     
  • Nikkei 225

    27,780.99
    -219.01 (-0.78%)
     

Are These Retail-Wholesale Stocks Undervalued Right Now?

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·3 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

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.

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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 #1 (Strong Buy), as well as an A grade for Value. The stock holds a P/E ratio of 8.90, while its industry has an average P/E of 13.90. Over the past 52 weeks, JILL's Forward P/E has been as high as 11.65 and as low as 8.06, with a median of 9.87.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. JILL has a P/S ratio of 0.27. This compares to its industry's average P/S of 0.6.

Investors could also keep in mind Tapestry (TPR), an Retail - Apparel and Shoes stock with a Zacks Rank of # 2 (Buy) and Value grade of A.

Shares of Tapestry are currently trading at a forward earnings multiple of 10.35 and a PEG ratio of 0.84 compared to its industry's P/E and PEG ratios of 13.90 and 0.81, respectively.

TPR's price-to-earnings ratio has been as high as 17.24 and as low as 9.81, with a median of 13.29, while its PEG ratio has been as high as 1.72 and as low as 0.80, with a median of 1.30, all within the past year.

Tapestry also has a P/B ratio of 3.38 compared to its industry's price-to-book ratio of 4.11. Over the past year, its P/B ratio has been as high as 4.54, as low as 3.04, with a median of 3.69.

These are only a few of the key metrics included in J.Jill and Tapestry strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, JILL and TPR look like an impressive value stock at the moment.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
J.Jill, Inc. (JILL) : Free Stock Analysis Report
 
Tapestry, Inc. (TPR) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research