Send me real-time posts from this site at my email

Are These Consumer Discretionary Stocks 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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 to watch right now is Central Garden & Pet (CENT). CENT is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 15.62, which compares to its industry's average of 19.21. Over the past 52 weeks, CENT's Forward P/E has been as high as 24.80 and as low as 14.67, with a median of 18.33.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. CENT has a P/S ratio of 0.84. This compares to its industry's average P/S of 1.02.

Another great Consumer Products - Discretionary stock you could consider is The Container Store (TCS), which is a # 2 (Buy) stock with a Value Score of A.

Additionally, The Container Store has a P/B ratio of 1.39 while its industry's price-to-book ratio sits at 7.62. For TCS, this valuation metric has been as high as 3, as low as 1.22, with a median of 1.74 over the past year.

Value investors will likely look at more than just these metrics, but the above data helps show that Central Garden & Pet and The Container Store are likely undervalued currently. And when considering the strength of its earnings outlook, CENT and TCS sticks out as one of the market's strongest value stocks.


Breakout Biotech Stocks with Triple-Digit Profit Potential

The biotech sector is projected to surge beyond $2.4 trillion by 2028 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.

Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Recommendations from previous editions of this report have produced gains of +205%, +258% and +477%. The stocks in this report could perform even better.

See these 7 breakthrough stocks now >>

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
 
Central Garden & Pet Company (CENT): Free Stock Analysis Report
 
Container Store The (TCS): Free Stock Analysis Report
 
To read this article on Zacks.com click here.

Welcome! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue