Are Investors Undervaluing Hugo Boss (BOSSY) Right Now?

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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 value investors might notice is Hugo Boss (BOSSY). BOSSY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.

Investors should also recognize that BOSSY has a P/B ratio of 3.72. 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. This stock's P/B looks solid versus its industry's average P/B of 6.87. BOSSY's P/B has been as high as 4.73 and as low as 2.91, with a median of 3.79, over the past year.

Finally, investors will want to recognize that BOSSY has a P/CF ratio of 6.57. 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. BOSSY's P/CF compares to its industry's average P/CF of 17.53. Over the past year, BOSSY's P/CF has been as high as 11.88 and as low as 5.60, with a median of 7.45.

Guess (GES) may be another strong Textile - Apparel stock to add to your shortlist. GES is a # 2 (Buy) stock with a Value grade of A.

Furthermore, Guess holds a P/B ratio of 2.94 and its industry's price-to-book ratio is 6.87. GES's P/B has been as high as 3.25, as low as 1.63, with a median of 2.30 over the past 12 months.

Value investors will likely look at more than just these metrics, but the above data helps show that Hugo Boss and Guess are likely undervalued currently. And when considering the strength of its earnings outlook, BOSSY and GES sticks out as one of the market's strongest value stocks.

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