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Is Buckle (BKE) Stock Undervalued Right Now?

Zacks Equity Research

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.

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.

Buckle (BKE) is a stock many investors are watching right now. BKE 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 9.50. This compares to its industry's average Forward P/E of 12.32. BKE's Forward P/E has been as high as 16.31 and as low as 9.50, with a median of 11.76, all within the past year.

We should also highlight that BKE has a P/B ratio of 1.95. Investors use the P/B ratio to look at a stock's market value versus 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 2.87. BKE's P/B has been as high as 3.47 and as low as 1.95, with a median of 2.42, over the past year.

Finally, investors should note that BKE has a P/CF ratio of 6.17. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. BKE's current P/CF looks attractive when compared to its industry's average P/CF of 6.40. Within the past 12 months, BKE's P/CF has been as high as 10.92 and as low as 6.17, with a median of 7.53.

Value investors will likely look at more than just these metrics, but the above data helps show that Buckle is likely undervalued currently. And when considering the strength of its earnings outlook, BKE sticks out at as one of the market's strongest value stocks.

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