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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 Canada Goose (GOOS). GOOS is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 9.65 right now. For comparison, its industry sports an average P/E of 14.87. Over the past year, GOOS's Forward P/E has been as high as 17.12 and as low as 8.09, with a median of 11.92.
GOOS is also sporting a PEG ratio of 0.65. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. GOOS's PEG compares to its industry's average PEG of 1.18. GOOS's PEG has been as high as 2.55 and as low as 0.48, with a median of 0.60, all within the past year.
We should also highlight that GOOS has a P/B ratio of 2.21. 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. GOOS's current P/B looks attractive when compared to its industry's average P/B of 5.13. GOOS's P/B has been as high as 4.88 and as low as 1.83, with a median of 3.57, over the past year.
Finally, our model also underscores that GOOS has a P/CF ratio of 5.54. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 11.76. Over the past year, GOOS's P/CF has been as high as 10.82 and as low as 4.58, with a median of 7.04.
These are just a handful of the figures considered in Canada Goose'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 GOOS is an impressive value stock right now.
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Canada Goose Holdings Inc. (GOOS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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