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.
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.
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.
YETI (YETI) is a stock many investors are watching right now. YETI is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 13.21, while its industry has an average P/E of 24.60. Over the past 52 weeks, YETI's Forward P/E has been as high as 16.99 and as low as 9.02, with a median of 13.33.
Investors should also recognize that YETI has a P/B ratio of 3.57. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. YETI's current P/B looks attractive when compared to its industry's average P/B of 4.21. Over the past 12 months, YETI's P/B has been as high as 4.93 and as low as 2.92, with a median of 3.90.
Finally, our model also underscores that YETI has a P/CF ratio of 12.62. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. YETI's P/CF compares to its industry's average P/CF of 32.08. Over the past 52 weeks, YETI's P/CF has been as high as 15.35 and as low as 9.92, with a median of 13.01.
These are only a few of the key metrics included in YETI'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, YETI looks like an impressive value stock at the moment.
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YETI Holdings, Inc. (YETI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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