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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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 The Gap (GAP - Free Report) . GAP is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 11.12. This compares to its industry's average Forward P/E of 16.20. Over the past 52 weeks, GAP's Forward P/E has been as high as 22.71 and as low as 9.98, with a median of 15.27.
Investors will also notice that GAP has a PEG ratio of 1.19. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. GAP's industry has an average PEG of 1.36 right now. GAP's PEG has been as high as 4.60 and as low as 1.07, with a median of 1.42, all within the past year.
Another notable valuation metric for GAP is its P/B ratio of 2.87. 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 solid versus its industry's average P/B of 4.51. Within the past 52 weeks, GAP's P/B has been as high as 4.07 and as low as 2.06, with a median of 2.99.
Finally, we should also recognize that GAP has a P/CF ratio of 6.66. 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. GAP's current P/CF looks attractive when compared to its industry's average P/CF of 13.07. Over the past year, GAP's P/CF has been as high as 14.18 and as low as 5.85, with a median of 7.40.
These are just a handful of the figures considered in The Gap'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 GAP is an impressive value stock right now.
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Is The Gap (GAP) Stock Undervalued 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 The Gap (GAP - Free Report) . GAP is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 11.12. This compares to its industry's average Forward P/E of 16.20. Over the past 52 weeks, GAP's Forward P/E has been as high as 22.71 and as low as 9.98, with a median of 15.27.
Investors will also notice that GAP has a PEG ratio of 1.19. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. GAP's industry has an average PEG of 1.36 right now. GAP's PEG has been as high as 4.60 and as low as 1.07, with a median of 1.42, all within the past year.
Another notable valuation metric for GAP is its P/B ratio of 2.87. 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 solid versus its industry's average P/B of 4.51. Within the past 52 weeks, GAP's P/B has been as high as 4.07 and as low as 2.06, with a median of 2.99.
Finally, we should also recognize that GAP has a P/CF ratio of 6.66. 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. GAP's current P/CF looks attractive when compared to its industry's average P/CF of 13.07. Over the past year, GAP's P/CF has been as high as 14.18 and as low as 5.85, with a median of 7.40.
These are just a handful of the figures considered in The Gap'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 GAP is an impressive value stock right now.