Advertisement
UK markets closed
  • FTSE 100

    8,203.93
    -37.33 (-0.45%)
     
  • FTSE 250

    20,786.65
    +176.31 (+0.86%)
     
  • AIM

    774.39
    +4.97 (+0.65%)
     
  • GBP/EUR

    1.1819
    +0.0021 (+0.18%)
     
  • GBP/USD

    1.2813
    +0.0052 (+0.41%)
     
  • Bitcoin GBP

    44,056.14
    +1,769.85 (+4.19%)
     
  • CMC Crypto 200

    1,169.43
    -39.26 (-3.25%)
     
  • S&P 500

    5,567.19
    +30.17 (+0.54%)
     
  • DOW

    39,375.87
    +67.87 (+0.17%)
     
  • CRUDE OIL

    83.44
    -0.44 (-0.52%)
     
  • GOLD FUTURES

    2,399.80
    +30.40 (+1.28%)
     
  • NIKKEI 225

    40,912.37
    -1.28 (-0.00%)
     
  • HANG SENG

    17,799.61
    -228.67 (-1.27%)
     
  • DAX

    18,475.45
    +24.97 (+0.14%)
     
  • CAC 40

    7,675.62
    -20.16 (-0.26%)
     

Are Investors Undervaluing J.Jill (JILL) 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.

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.

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 J.Jill (JILL). JILL is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 9.47, while its industry has an average P/E of 14.13. Over the last 12 months, JILL's Forward P/E has been as high as 11.37 and as low as -10.08, with a median of 8.19.

ADVERTISEMENT

Finally, our model also underscores that JILL has a P/CF ratio of 7.07. 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 stock's P/CF looks attractive against its industry's average P/CF of 12.45. JILL's P/CF has been as high as 7.33 and as low as 2.94, with a median of 4.86, all within the past year.

Levi Strauss & Co. (LEVI) may be another strong Retail - Apparel and Shoes stock to add to your shortlist. LEVI is a # 2 (Buy) stock with a Value grade of A.

Levi Strauss & Co. is currently trading with a Forward P/E ratio of 10.16 while its PEG ratio sits at 0.46. Both of the company's metrics compare favorably to its industry's average P/E of 14.13 and average PEG ratio of 0.85.

Over the last 12 months, LEVI's P/E has been as high as 14.04, as low as 9.47, with a median of 10.94, and its PEG ratio has been as high as 5.48, as low as 0.44, with a median of 2.84.

Furthermore, Levi Strauss & Co. holds a P/B ratio of 2.75 and its industry's price-to-book ratio is 3.39. LEVI's P/B has been as high as 3.96, as low as 2.62, with a median of 3.09 over the past 12 months.

These are only a few of the key metrics included in J.Jill and Levi Strauss & Co. strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, JILL and LEVI look like an impressive value stock at the moment.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

J.Jill, Inc. (JILL) : Free Stock Analysis Report

Levi Strauss & Co. (LEVI) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research