Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 stock to keep an eye on is Canada Goose (GOOS). GOOS is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 12.88 right now. For comparison, its industry sports an average P/E of 15.98. Over the past year, GOOS's Forward P/E has been as high as 16.45 and as low as 8.09, with a median of 11.61.
GOOS is also sporting a PEG ratio of 0.95. 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. GOOS's PEG compares to its industry's average PEG of 1.06. Over the last 12 months, GOOS's PEG has been as high as 1.05 and as low as 0.48, with a median of 0.66.
Investors should also recognize that GOOS has a P/B ratio of 4.12. The P/B ratio is used to compare a stock's market value with 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 6.45. Within the past 52 weeks, GOOS's P/B has been as high as 4.72 and as low as 1.67, with a median of 3.33.
Finally, we should also recognize that GOOS has a P/CF ratio of 10.51. 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. GOOS's P/CF compares to its industry's average P/CF of 15.99. GOOS's P/CF has been as high as 11.70 and as low as 4.17, with a median of 6.87, all within the past year.
These are only a few of the key metrics included in Canada Goose's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, GOOS looks like an impressive value stock at the moment.
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Canada Goose Holdings Inc. (GOOS): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).