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Is Boot Barn (BOOT) a Great Value Stock Right Now?

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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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 Boot Barn (BOOT). BOOT is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock holds a P/E ratio of 13.66, while its industry has an average P/E of 13.96. Over the past year, BOOT's Forward P/E has been as high as 26.30 and as low as 13.66, with a median of 20.92.

Investors will also notice that BOOT has a PEG ratio of 0.59. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. BOOT's industry currently sports an average PEG of 1.20. BOOT's PEG has been as high as 1.68 and as low as 0.59, with a median of 1, all within the past year.

Investors should also recognize that BOOT has a P/B ratio of 2.28. 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. BOOT's current P/B looks attractive when compared to its industry's average P/B of 3.69. Within the past 52 weeks, BOOT's P/B has been as high as 3.88 and as low as 2.14, with a median of 2.72.

These are just a handful of the figures considered in Boot Barn's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that BOOT is an impressive value stock right now.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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