Advertisement
Canada markets close in 6 hours 9 minutes
  • S&P/TSX

    22,279.90
    +20.43 (+0.09%)
     
  • S&P 500

    5,186.85
    +6.11 (+0.12%)
     
  • DOW

    38,922.49
    +70.22 (+0.18%)
     
  • CAD/USD

    0.7307
    -0.0014 (-0.20%)
     
  • CRUDE OIL

    78.17
    -0.31 (-0.40%)
     
  • Bitcoin CAD

    86,796.42
    -562.58 (-0.64%)
     
  • CMC Crypto 200

    1,318.87
    -46.26 (-3.39%)
     
  • GOLD FUTURES

    2,328.80
    -2.40 (-0.10%)
     
  • RUSSELL 2000

    2,066.69
    +6.02 (+0.29%)
     
  • 10-Yr Bond

    4.4490
    -0.0400 (-0.89%)
     
  • NASDAQ

    16,340.76
    -8.48 (-0.05%)
     
  • VOLATILITY

    13.48
    -0.01 (-0.07%)
     
  • FTSE

    8,321.38
    +107.89 (+1.31%)
     
  • NIKKEI 225

    38,835.10
    +599.03 (+1.57%)
     
  • CAD/EUR

    0.6775
    -0.0017 (-0.25%)
     

Is Burlington Stores (BURL) Stock Undervalued Right Now?

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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

Burlington Stores (BURL) is a stock many investors are watching right now. BURL is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 22.90, while its industry has an average P/E of 28.32. Over the past 52 weeks, BURL's Forward P/E has been as high as 34.37 and as low as 16.53, with a median of 25.05.

ADVERTISEMENT

BURL is also sporting a PEG ratio of 0.99. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. BURL's industry currently sports an average PEG of 2.65. BURL's PEG has been as high as 1.31 and as low as 0.51, with a median of 0.78, all within the past year.

We should also highlight that BURL has a P/B ratio of 11.46. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. BURL's current P/B looks attractive when compared to its industry's average P/B of 13.16. BURL's P/B has been as high as 15.85 and as low as 9, with a median of 13, over the past year.

Finally, investors will want to recognize that BURL has a P/CF ratio of 17.72. 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. BURL's current P/CF looks attractive when compared to its industry's average P/CF of 27.41. Within the past 12 months, BURL's P/CF has been as high as 25.15 and as low as 13.05, with a median of 19.63.

These are only a few of the key metrics included in Burlington Stores'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, BURL looks like an impressive value stock at the moment.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Burlington Stores, Inc. (BURL) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research