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Are Investors Undervaluing Land's End (LE) Right Now?

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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.

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.

Land's End (LE - Free Report) is a stock many investors are watching right now. LE is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 33.45, which compares to its industry's average of 33.46. Over the last 12 months, LE's Forward P/E has been as high as 108.30 and as low as -67.60, with a median of 60.

Finally, our model also underscores that LE has a P/CF ratio of 30.08. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 34.64. LE's P/CF has been as high as 47.09 and as low as 8.39, with a median of 17.23, all within the past year.

Value investors will likely look at more than just these metrics, but the above data helps show that Land's End is likely undervalued currently. And when considering the strength of its earnings outlook, LE sticks out at as one of the market's strongest value stocks.


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