Should Value Investors Buy Levi Strauss & Co. (LEVI) Stock?

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 company value investors might notice is Levi Strauss & Co. (LEVI). LEVI is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.

Investors will also notice that LEVI has a PEG ratio of 1.21. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. LEVI's PEG compares to its industry's average PEG of 1.48. LEVI's PEG has been as high as 3.19 and as low as 0.44, with a median of 0.55, all within the past year.

We should also highlight that LEVI has a P/B ratio of 4.63. 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 4.85. Over the past 12 months, LEVI's P/B has been as high as 4.87 and as low as 2.62, with a median of 3.10.

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

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