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Is Burlington Stores (BURL) Stock Undervalued Right Now?

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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.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 stock to keep an eye on is Burlington Stores (BURL - Free Report) . BURL is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.

Investors should also note that BURL holds a PEG ratio of 1.24. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. BURL's industry currently sports an average PEG of 3.38. Over the past 52 weeks, BURL's PEG has been as high as 1.31 and as low as 0.51, with a median of 1.04.

Finally, our model also underscores that BURL has a P/CF ratio of 23.17. 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. This stock's P/CF looks attractive against its industry's average P/CF of 30.75. Over the past 52 weeks, BURL's P/CF has been as high as 23.51 and as low as 13.05, with a median of 20.67.

These are just a handful of the figures considered in Burlington Stores'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 BURL is an impressive value stock right now.


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