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Are Investors Undervaluing Foot Locker (FL) Right Now?
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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.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is Foot Locker (FL - Free Report) . FL is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 13.29. This compares to its industry's average Forward P/E of 16.03. Over the past 52 weeks, FL's Forward P/E has been as high as 21.83 and as low as 10.66, with a median of 14.06.
Investors will also notice that FL has a PEG ratio of 0.49. 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. FL's PEG compares to its industry's average PEG of 1.35. Within the past year, FL's PEG has been as high as 0.65 and as low as 0.44, with a median of 0.51.
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. FL has a P/S ratio of 0.29. This compares to its industry's average P/S of 0.47.
Another great Retail - Apparel and Shoes stock you could consider is The Gap (GAP - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
The Gap is trading at a forward earnings multiple of 10.92 at the moment, with a PEG ratio of 1.17. This compares to its industry's average P/E of 16.03 and average PEG ratio of 1.35.
Over the last 12 months, GAP's P/E has been as high as 22.71, as low as 9.98, with a median of 15.34, and its PEG ratio has been as high as 4.60, as low as 1.07, with a median of 1.42.
The Gap sports a P/B ratio of 2.81 as well; this compares to its industry's price-to-book ratio of 4.49. In the past 52 weeks, GAP's P/B has been as high as 4.07, as low as 1.99, with a median of 2.99.
These are only a few of the key metrics included in Foot Locker and The Gap strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, FL and GAP look like an impressive value stock at the moment.
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Are Investors Undervaluing Foot Locker (FL) Right Now?
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.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is Foot Locker (FL - Free Report) . FL is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 13.29. This compares to its industry's average Forward P/E of 16.03. Over the past 52 weeks, FL's Forward P/E has been as high as 21.83 and as low as 10.66, with a median of 14.06.
Investors will also notice that FL has a PEG ratio of 0.49. 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. FL's PEG compares to its industry's average PEG of 1.35. Within the past year, FL's PEG has been as high as 0.65 and as low as 0.44, with a median of 0.51.
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. FL has a P/S ratio of 0.29. This compares to its industry's average P/S of 0.47.
Another great Retail - Apparel and Shoes stock you could consider is The Gap (GAP - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
The Gap is trading at a forward earnings multiple of 10.92 at the moment, with a PEG ratio of 1.17. This compares to its industry's average P/E of 16.03 and average PEG ratio of 1.35.
Over the last 12 months, GAP's P/E has been as high as 22.71, as low as 9.98, with a median of 15.34, and its PEG ratio has been as high as 4.60, as low as 1.07, with a median of 1.42.
The Gap sports a P/B ratio of 2.81 as well; this compares to its industry's price-to-book ratio of 4.49. In the past 52 weeks, GAP's P/B has been as high as 4.07, as low as 1.99, with a median of 2.99.
These are only a few of the key metrics included in Foot Locker and The Gap strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, FL and GAP look like an impressive value stock at the moment.