Should Value Investors Buy J.Jill (JILL) Stock?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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.
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.
J.Jill (JILL) is a stock many investors are watching right now. JILL is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 9.59, while its industry has an average P/E of 13.89. JILL's Forward P/E has been as high as 11.37 and as low as -10.08, with a median of 8.31, all within the past year.
Finally, our model also underscores that JILL has a P/CF ratio of 7.17. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. JILL's current P/CF looks attractive when compared to its industry's average P/CF of 13.51. Over the past 52 weeks, JILL's P/CF has been as high as 7.33 and as low as 3.27, with a median of 4.92.
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.
Urban Outfitters is trading at a forward earnings multiple of 10.19 at the moment, with a PEG ratio of 0.43. This compares to its industry's average P/E of 13.89 and average PEG ratio of 0.84.
Over the last 12 months, URBN's P/E has been as high as 16.59, as low as 9.46, with a median of 11.51, and its PEG ratio has been as high as 0.92, as low as 0.40, with a median of 0.64.
Furthermore, Urban Outfitters holds a P/B ratio of 1.60 and its industry's price-to-book ratio is 3.48. URBN's P/B has been as high as 1.79, as low as 1.20, with a median of 1.46 over the past 12 months.
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
