Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
One company to watch right now is Burlington Stores (BURL). BURL is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 27.45. This compares to its industry's average Forward P/E of 28.92. Over the past year, BURL's Forward P/E has been as high as 34.37 and as low as 16.53, with a median of 27.74.
Investors should also note that BURL holds a PEG ratio of 1.11. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. BURL's PEG compares to its industry's average PEG of 3.22. Over the past 52 weeks, BURL's PEG has been as high as 1.31 and as low as 0.51, with a median of 1.05.
Finally, our model also underscores that BURL has a P/CF ratio of 20.90. 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 28.30. Over the past 52 weeks, BURL's P/CF has been as high as 23.51 and as low as 13.05, with a median of 20.99.
These are just a handful of the figures considered in Burlington Stores'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 BURL is an impressive value stock right now.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
