Should Value Investors Buy Boot Barn (BOOT) Stock?
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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 to watch right now is Boot Barn (BOOT). BOOT is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value.
Investors should also note that BOOT holds a PEG ratio of 0.88. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. BOOT's PEG compares to its industry's average PEG of 1.14. Within the past year, BOOT's PEG has been as high as 1.20 and as low as 0.49, with a median of 0.92.
Another valuation metric that we should highlight is BOOT's P/B ratio of 3. 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 3.70. Within the past 52 weeks, BOOT's P/B has been as high as 3.88 and as low as 1.87, with a median of 2.75.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Boot Barn is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BOOT feels like a great 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
Boot Barn Holdings, Inc. (BOOT) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
