Yahoo Finance Should Value Investors Buy Shoe Carnival (SCVL) Stock?
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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is Shoe Carnival (SCVL). SCVL is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 5.48, while its industry has an average P/E of 10.94. SCVL's Forward P/E has been as high as 8.70 and as low as 4.81, with a median of 5.96, all within the past year.
Another valuation metric that we should highlight is SCVL's P/B ratio of 1.28. The P/B is a method of comparing a stock's market value to 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 2.76. Over the past year, SCVL's P/B has been as high as 2.64 and as low as 1.14, with a median of 1.46.
Finally, investors will want to recognize that SCVL has a P/CF ratio of 5.07. 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. SCVL's P/CF compares to its industry's average P/CF of 7.19. SCVL's P/CF has been as high as 7.25 and as low as 3.64, with a median of 4.95, all within the past year.
If you're looking for another solid Retail - Apparel and Shoes value stock, take a look at Urban Outfitters (URBN). URBN is a # 2 (Buy) stock with a Value score of A.
Urban Outfitters is currently trading with a Forward P/E ratio of 10.90 while its PEG ratio sits at 0.61. Both of the company's metrics compare favorably to its industry's average P/E of 10.94 and average PEG ratio of 0.71.
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Shoe Carnival, Inc. (SCVL) : Free Stock Analysis Report
Urban Outfitters, Inc. (URBN) : Free Stock Analysis Report
