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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
Hugo Boss (BOSSY) is a stock many investors are watching right now. BOSSY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
Investors should also recognize that BOSSY has a P/B ratio of 3.62. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 6.36. Over the past 12 months, BOSSY's P/B has been as high as 4.73 and as low as 2.91, with a median of 3.78.
Finally, investors should note that BOSSY has a P/CF ratio of 6.14. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 16.20. Over the past year, BOSSY's P/CF has been as high as 32.86 and as low as 5.59, with a median of 7.23.
If you're looking for another solid Textile - Apparel value stock, take a look at Oxford Industries (OXM). OXM is a # 2 (Buy) stock with a Value score of A.
Oxford Industries sports a P/B ratio of 2.68 as well; this compares to its industry's price-to-book ratio of 6.36. In the past 52 weeks, OXM's P/B has been as high as 3.71, as low as 2.53, with a median of 3.03.
These are just a handful of the figures considered in Hugo Boss and Oxford Industries'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 BOSSY and OXM is an impressive value stock right now.
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