Yahoo Finance Are Investors Undervaluing Shoe Carnival (SCVL) 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.
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 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.
One stock to keep an eye on is Shoe Carnival (SCVL). SCVL is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 5.02, while its industry has an average P/E of 11.93. Over the last 12 months, SCVL's Forward P/E has been as high as 8.70 and as low as 4.81, with a median of 6.02.
Another notable valuation metric for SCVL is its P/B ratio of 1.17. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. SCVL's current P/B looks attractive when compared to its industry's average P/B of 2.80. Over the past 12 months, SCVL's P/B has been as high as 2.64 and as low as 1.14, with a median of 1.52.
Finally, we should also recognize that SCVL has a P/CF ratio of 4.62. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 6.47. Over the past year, SCVL's P/CF has been as high as 7.25 and as low as 3.64, with a median of 4.97.
Investors could also keep in mind Urban Outfitters (URBN), an Retail - Apparel and Shoes stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Shares of Urban Outfitters are currently trading at a forward earnings multiple of 12.35 and a PEG ratio of 0.69 compared to its industry's P/E and PEG ratios of 11.93 and 0.74, respectively.
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Shoe Carnival, Inc. (SCVL) : Free Stock Analysis Report
Urban Outfitters, Inc. (URBN) : Free Stock Analysis Report
