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Is Land's End (LE) 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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. 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 company to watch right now is Land's End (LE - Free Report) . LE is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 30.69, which compares to its industry's average of 30.88. LE's Forward P/E has been as high as 83.63 and as low as -67.60, with a median of 56.14, all within the past year.

We should also highlight that LE has a P/B ratio of 2.23. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. LE's current P/B looks attractive when compared to its industry's average P/B of 2.25. Over the past 12 months, LE's P/B has been as high as 2.75 and as low as 0.54, with a median of 1.71.

Finally, we should also recognize that LE has a P/CF ratio of 36.68. 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. LE's P/CF compares to its industry's average P/CF of 37.07. Over the past year, LE's P/CF has been as high as 47.09 and as low as 8.39, with a median of 23.99.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Land's End is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, LE feels like a great value stock at the moment.


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