Australia Markets open in 3 hrs 11 mins

    +39.40 (+0.49%)

    -0.0028 (-0.4168%)
  • ASX 200

    +34.20 (+0.44%)
  • OIL

    -0.56 (-0.71%)
  • GOLD

    -35.60 (-1.51%)

    -2,499.83 (-2.43%)
  • CMC Crypto 200

    +4.79 (+0.34%)

Is Shoe Carnival (SCVL) 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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 stock to keep an eye on is Shoe Carnival (SCVL). SCVL is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 5.76. This compares to its industry's average Forward P/E of 11.88. Over the last 12 months, SCVL's Forward P/E has been as high as 8.70 and as low as 4.81, with a median of 6.09.


Investors should also recognize that SCVL has a P/B ratio of 1.38. 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 solid versus its industry's average P/B of 2.80. Over the past year, SCVL's P/B has been as high as 2.89 and as low as 1.14, with a median of 1.77.

Finally, investors will want to recognize that SCVL has a P/CF ratio of 4.69. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 6.48. Within the past 12 months, SCVL's P/CF has been as high as 7.95 and as low as 3.64, with a median of 4.91.

If you're looking for another solid Retail - Apparel and Shoes value stock, take a look at Sportsman's Warehouse (SPWH). SPWH is a # 2 (Buy) stock with a Value score of A.

Furthermore, Sportsman's Warehouse holds a P/B ratio of 1.31 and its industry's price-to-book ratio is 2.80. SPWH's P/B has been as high as 3.05, as low as 1.20, with a median of 1.47 over the past 12 months.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Shoe Carnival and Sportsman's Warehouse are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SCVL and SPWH feels like a great 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
Shoe Carnival, Inc. (SCVL) : Free Stock Analysis Report
Sportsman's Warehouse Holdings, Inc. (SPWH) : Free Stock Analysis Report
To read this article on click here.
Zacks Investment Research