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Should Value Investors Buy Buckle (BKE) Stock?

Zacks Equity Research
Chevron (CVX) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.

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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company to watch right now is Buckle (BKE). BKE is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 11.49. This compares to its industry's average Forward P/E of 14.30. Over the last 12 months, BKE's Forward P/E has been as high as 16.31 and as low as 10.20, with a median of 12.96.

We should also highlight that BKE has a P/B ratio of 2.18. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 3.60. BKE's P/B has been as high as 3.47 and as low as 2.01, with a median of 2.72, over the past year.

Finally, investors should note that BKE has a P/CF ratio of 7.01. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 7.63. BKE's P/CF has been as high as 10.92 and as low as 6.49, with a median of 8.51, all within the past year.

These are just a handful of the figures considered in Buckle's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that BKE is an impressive value stock right now.


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