Is Abercrombie & Fitch (ANF) Stock Undervalued Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. 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.
One company to watch right now is Abercrombie & Fitch (ANF). ANF is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 17.77. This compares to its industry's average Forward P/E of 19.78. Over the past 52 weeks, ANF's Forward P/E has been as high as 21.85 and as low as 5.34, with a median of 9.95.
Investors will also notice that ANF has a PEG ratio of 0.46. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ANF's industry has an average PEG of 1.28 right now.
Another valuation metric that we should highlight is ANF's P/B ratio of 2.18. 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 3.30. Within the past 52 weeks, ANF's P/B has been as high as 2.77 and as low as 1.08, with a median of 1.63.
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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. ANF has a P/S ratio of 0.39. This compares to its industry's average P/S of 0.48.
Another great Retail - Apparel and Shoes stock you could consider is Foot Locker (FL), which is a # 2 (Buy) stock with a Value Score of A.
Foot Locker is currently trading with a Forward P/E ratio of 9.93 while its PEG ratio sits at 0.25. Both of the company's metrics compare favorably to its industry's average P/E of 19.78 and average PEG ratio of 1.28.
Over the last 12 months, FL's P/E has been as high as 10.03, as low as 4.75, with a median of 7.19, and its PEG ratio has been as high as 0.28, as low as 0.15, with a median of 0.22.
Additionally, Foot Locker has a P/B ratio of 1.25 while its industry's price-to-book ratio sits at 3.30. For FL, this valuation metric has been as high as 1.39, as low as 0.71, with a median of 0.94 over the past year.
These are just a handful of the figures considered in Abercrombie & Fitch and Foot Locker'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 ANF and FL is an impressive value stock right now.
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Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report
Foot Locker, Inc. (FL) : Free Stock Analysis Report
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