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 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 Genesco (GCO). GCO is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 16.91. This compares to its industry's average Forward P/E of 18.26. Over the last 12 months, 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 11.89. 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 17.48. GCO's P/CF has been as high as 17.26 and as low as 5.49, with a median of 7.39, all within the past year.
J.Jill (JILL) may be another strong Retail - Apparel and Shoes stock to add to your shortlist. JILL is a Zacks Rank of #1 (Strong Buy) stock with a Value grade of A.
Furthermore, J.Jill holds a P/B ratio of 2.26 and its industry's price-to-book ratio is 7.06. JILL's P/B has been as high as 4.27, as low as 1.85, with a median of 2.77 over the past 12 months.
These are just a handful of the figures considered in Genesco and J.Jill'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 and JILL is an impressive value stock right now.
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Genesco Inc. (GCO): Free Stock Analysis Report J.Jill, Inc. (JILL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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