The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 to watch right now is Shoe Carnival (NYSE:CCL) (SCVL). SCVL is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 13.12, while its industry has an average P/E of 14.19. Over the past year, SCVL's Forward P/E has been as high as 19.59 and as low as 11.50, with a median of 14.88.
We should also highlight that SCVL has a P/B ratio of 1.77. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 3.76. Over the past year, SCVL's P/B has been as high as 2.28 and as low as 1.20, with a median of 1.68.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. SCVL has a P/S ratio of 0.49. This compares to its industry's average P/S of 0.53.
These are just a handful of the figures considered in Shoe Carnival'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 SCVL is an impressive value stock right now.
Shoe Carnival, Inc. (SCVL): Free Stock Analysis Report
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