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Should Value Investors Buy Seven and I Holdings Co. (SVNDY) Stock?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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.

One company value investors might notice is Seven and I Holdings Co. (SVNDY - Free Report) . SVNDY is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 11.69, which compares to its industry's average of 16.37. SVNDY's Forward P/E has been as high as 19.06 and as low as 9.88, with a median of 12.97, all within the past year.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. SVNDY has a P/S ratio of 0.52. This compares to its industry's average P/S of 0.77.

Finally, our model also underscores that SVNDY has a P/CF ratio of 8.08. 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. SVNDY's current P/CF looks attractive when compared to its industry's average P/CF of 18.24. SVNDY's P/CF has been as high as 8.49 and as low as 5.65, with a median of 7.29, all within the past year.

Value investors will likely look at more than just these metrics, but the above data helps show that Seven and I Holdings Co. is likely undervalued currently. And when considering the strength of its earnings outlook, SVNDY sticks out as one of the market's strongest value stocks.

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