Yahoo Finance Should Value Investors Buy Abercrombie & Fitch (ANF) Stock?
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.
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 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 stock to keep an eye on is Abercrombie & Fitch (ANF). ANF is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
We should also highlight that ANF has a P/B ratio of 1.58. 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 2.59. Within the past 52 weeks, ANF's P/B has been as high as 2.60 and as low as 1.08, with a median of 1.61.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. ANF has a P/S ratio of 0.3. This compares to its industry's average P/S of 0.39.
Another great Retail - Apparel and Shoes stock you could consider is Nordstrom (JWN), which is a # 2 (Buy) stock with a Value Score of A.
Shares of Nordstrom currently holds a Forward P/E ratio of 7.44, and its PEG ratio is 1.29. In comparison, its industry sports average P/E and PEG ratios of 13.19 and 0.76.
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Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report
Nordstrom, Inc. (JWN) : Free Stock Analysis Report
