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Is Boot Barn (BOOT) Stock Undervalued Right Now?

Zacks

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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system’s “Value” category. Stocks with both “A” grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company to watch right now is Boot Barn (BOOT). BOOT is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.


We also note that BOOT holds a PEG ratio of 0.92. 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. BOOT’s industry has an average PEG of 1.28 right now. Within the past year, BOOT’s PEG has been as high as 1.20 and as low as 0.49, with a median of 0.92.

Investors should also recognize that BOOT has a P/B ratio of 3.16. 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 3.80. Over the past year, BOOT’s P/B has been as high as 3.88 and as low as 1.87, with a median of 2.87.

These are only a few of the key metrics included in Boot Barn’s strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, BOOT looks like an impressive value stock at the moment.


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