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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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 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.
One stock to keep an eye on is Nordstrom . JWN is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 11.78, which compares to its industry's average of 15.67. Over the last 12 months, JWN's Forward P/E has been as high as 13.36 and as low as 6.56, with a median of 11.25.
Another valuation metric that we should highlight is JWN's P/B ratio of 3.91. 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. This stock's P/B looks attractive against its industry's average P/B of 4.37. JWN's P/B has been as high as 4.65 and as low as 2.91, with a median of 3.90, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. JWN has a P/S ratio of 0.25. This compares to its industry's average P/S of 0.47.
Finally, we should also recognize that JWN has a P/CF ratio of 3.28. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 12.66. JWN's P/CF has been as high as 3.82 and as low as 2.45, with a median of 3.25, all within the past year.
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 10.99 and a PEG ratio of 1.83 compared to its industry's P/E and PEG ratios of 15.67 and 1.32, respectively.
Over the past year, TPR's P/E has been as high as 11.16, as low as 6.45, with a median of 9.22; its PEG ratio has been as high as 1.86, as low as 0.56, with a median of 2.20 during the same time period.
Tapestry sports a P/B ratio of 4 as well; this compares to its industry's price-to-book ratio of 4.37. In the past 52 weeks, TPR's P/B has been as high as 4.19, as low as 2.61, with a median of 3.42.
These are just a handful of the figures considered in Nordstrom and Tapestry'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 JWN and TPR is an impressive value stock right now.
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Should Value Investors Buy Nordstrom (JWN) Stock?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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 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.
One stock to keep an eye on is Nordstrom . JWN is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 11.78, which compares to its industry's average of 15.67. Over the last 12 months, JWN's Forward P/E has been as high as 13.36 and as low as 6.56, with a median of 11.25.
Another valuation metric that we should highlight is JWN's P/B ratio of 3.91. 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. This stock's P/B looks attractive against its industry's average P/B of 4.37. JWN's P/B has been as high as 4.65 and as low as 2.91, with a median of 3.90, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. JWN has a P/S ratio of 0.25. This compares to its industry's average P/S of 0.47.
Finally, we should also recognize that JWN has a P/CF ratio of 3.28. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 12.66. JWN's P/CF has been as high as 3.82 and as low as 2.45, with a median of 3.25, all within the past year.
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 10.99 and a PEG ratio of 1.83 compared to its industry's P/E and PEG ratios of 15.67 and 1.32, respectively.
Over the past year, TPR's P/E has been as high as 11.16, as low as 6.45, with a median of 9.22; its PEG ratio has been as high as 1.86, as low as 0.56, with a median of 2.20 during the same time period.
Tapestry sports a P/B ratio of 4 as well; this compares to its industry's price-to-book ratio of 4.37. In the past 52 weeks, TPR's P/B has been as high as 4.19, as low as 2.61, with a median of 3.42.
These are just a handful of the figures considered in Nordstrom and Tapestry'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 JWN and TPR is an impressive value stock right now.