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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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.
Barnes & Noble Education (BNED) is a stock many investors are watching right now. BNED is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A.
We should also highlight that BNED has a P/B ratio of 1.12. 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 stock's P/B looks attractive against its industry's average P/B of 2.47. BNED's P/B has been as high as 2.05 and as low as 0.89, with a median of 1.33, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. BNED has a P/S ratio of 0.24. This compares to its industry's average P/S of 0.67.
If you're looking for another solid Consumer Products - Discretionary value stock, take a look at Central Garden & Pet (CENTA). CENTA is a Zacks Rank of #2 (Buy) stock with a Value score of A.
Furthermore, Central Garden & Pet holds a P/B ratio of 1.24 and its industry's price-to-book ratio is 2.47. CENTA's P/B has been as high as 1.58, as low as 1.20, with a median of 1.35 over the past 12 months.
These are just a handful of the figures considered in Barnes & Noble Education and Central Garden & Pet'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 BNED and CENTA is an impressive value stock right now.
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