Is Spartan Stores (SPTN) a Great Value Stock Right Now?
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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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.
Spartan Stores (SPTN) is a stock many investors are watching right now. SPTN is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 9.31, which compares to its industry's average of 15.40. Over the past year, SPTN's Forward P/E has been as high as 14.89 and as low as 7.35, with a median of 10.04.
Another valuation metric that we should highlight is SPTN's P/B ratio of 1.01. 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 stock's P/B looks attractive against its industry's average P/B of 2.25. Over the past 12 months, SPTN's P/B has been as high as 1.17 and as low as 0.49, with a median of 0.79.
Finally, our model also underscores that SPTN has a P/CF ratio of 5.11. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. SPTN's current P/CF looks attractive when compared to its industry's average P/CF of 8.44. Within the past 12 months, SPTN's P/CF has been as high as 7.59 and as low as 3.53, with a median of 5.45.
These are just a handful of the figures considered in Spartan Stores'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 SPTN is an impressive value stock right now.
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