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Should Value Investors Buy Abercrombie & Fitch (ANF) Stock?
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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.
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 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.
Abercrombie & Fitch (ANF - Free Report) is a stock many investors are watching right now. ANF is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 15.53. This compares to its industry's average Forward P/E of 16.72. ANF's Forward P/E has been as high as 24.20 and as low as 12.79, with a median of 16.22, all within the past year.
Finally, our model also underscores that ANF has a P/CF ratio of 13.22. 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. ANF's current P/CF looks attractive when compared to its industry's average P/CF of 13.38. Over the past 52 weeks, ANF's P/CF has been as high as 18.04 and as low as 9.21, with a median of 13.34.
Investors could also keep in mind Tapestry (TPR - Free Report) , an Retail - Apparel and Shoes stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Shares of Tapestry are currently trading at a forward earnings multiple of 9.99 and a PEG ratio of 1.66 compared to its industry's P/E and PEG ratios of 16.72 and 1.46, respectively.
TPR's Forward P/E has been as high as 10.91 and as low as 6.25, with a median of 9.15. During the same time period, its PEG ratio has been as high as 1.77, as low as 0.54, with a median of 0.83.
Tapestry sports a P/B ratio of 3.63 as well; this compares to its industry's price-to-book ratio of 4.62. In the past 52 weeks, TPR's P/B has been as high as 4.19, as low as 2.52, with a median of 3.38.
These are only a few of the key metrics included in Abercrombie & Fitch and Tapestry strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, ANF and TPR look like an impressive value stock at the moment.
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Should Value Investors Buy Abercrombie & Fitch (ANF) Stock?
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.
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 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.
Abercrombie & Fitch (ANF - Free Report) is a stock many investors are watching right now. ANF is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 15.53. This compares to its industry's average Forward P/E of 16.72. ANF's Forward P/E has been as high as 24.20 and as low as 12.79, with a median of 16.22, all within the past year.
Finally, our model also underscores that ANF has a P/CF ratio of 13.22. 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. ANF's current P/CF looks attractive when compared to its industry's average P/CF of 13.38. Over the past 52 weeks, ANF's P/CF has been as high as 18.04 and as low as 9.21, with a median of 13.34.
Investors could also keep in mind Tapestry (TPR - Free Report) , an Retail - Apparel and Shoes stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Shares of Tapestry are currently trading at a forward earnings multiple of 9.99 and a PEG ratio of 1.66 compared to its industry's P/E and PEG ratios of 16.72 and 1.46, respectively.
TPR's Forward P/E has been as high as 10.91 and as low as 6.25, with a median of 9.15. During the same time period, its PEG ratio has been as high as 1.77, as low as 0.54, with a median of 0.83.
Tapestry sports a P/B ratio of 3.63 as well; this compares to its industry's price-to-book ratio of 4.62. In the past 52 weeks, TPR's P/B has been as high as 4.19, as low as 2.52, with a median of 3.38.
These are only a few of the key metrics included in Abercrombie & Fitch and Tapestry strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, ANF and TPR look like an impressive value stock at the moment.