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Are Investors Undervaluing Burlington Stores (BURL) 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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 value investors might notice is Burlington Stores (BURL). BURL is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 29.55. This compares to its industry's average Forward P/E of 30.51. Over the past 52 weeks, BURL's Forward P/E has been as high as 34.37 and as low as 16.53, with a median of 24.67.

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BURL is also sporting a PEG ratio of 1.21. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. BURL's PEG compares to its industry's average PEG of 2.98. BURL's PEG has been as high as 1.31 and as low as 0.51, with a median of 0.93, all within the past year.

Finally, investors should note that BURL has a P/CF ratio of 21.41. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 30.03. Over the past year, BURL's P/CF has been as high as 23.02 and as low as 13.05, with a median of 19.30.

Another great Retail - Discount Stores stock you could consider is PriceSmart (PSMT), which is a # 2 (Buy) stock with a Value Score of A.

Additionally, PriceSmart has a P/B ratio of 2.35 while its industry's price-to-book ratio sits at 14.41. For PSMT, this valuation metric has been as high as 2.43, as low as 1.75, with a median of 2.17 over the past year.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Burlington Stores and PriceSmart are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BURL and PSMT feels like a great value stock at the moment.

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Burlington Stores, Inc. (BURL) : Free Stock Analysis Report

PriceSmart, Inc. (PSMT) : Free Stock Analysis Report

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Zacks Investment Research