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.
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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
Genesco (GCO) is a stock many investors are watching right now. GCO is currently sporting a Zacks Rank #1 (Strong Buy), as well as a Value grade of A. The stock holds a P/E ratio of 17.39, while its industry has an average P/E of 18.56. Over the past 52 weeks, GCO's Forward P/E has been as high as 42.65 and as low as 8.43, with a median of 15.89.
Finally, investors will want to recognize that GCO has a P/CF ratio of 12.28. 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. This stock's P/CF looks attractive against its industry's average P/CF of 15.98. GCO's P/CF has been as high as 17.26 and as low as 5.09, with a median of 7.23, all within the past year.
These are just a handful of the figures considered in Genesco'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 GCO is an impressive value stock right now.
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Genesco Inc. (GCO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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