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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 Shoe Carnival (SCVL). SCVL 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 12.69, which compares to its industry's average of 18.55. Over the past 52 weeks, SCVL's Forward P/E has been as high as 15.85 and as low as 7.18, with a median of 11.68.
Finally, investors should note that SCVL has a P/CF ratio of 6.26. 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 15.95. Over the past 52 weeks, SCVL's P/CF has been as high as 11.74 and as low as 4.41, with a median of 7.82.
These are only a few of the key metrics included in Shoe Carnival's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, SCVL looks like an impressive value stock at the moment.
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Shoe Carnival, Inc. (SCVL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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