Is Shoe Carnival (SCVL) Stock Undervalued Right Now?

Core Insights - The article emphasizes the importance of value investing, highlighting the identification of undervalued companies through fundamental analysis and traditional valuation metrics [2][3] Company Analysis: Shoe Carnival (SCVL) - Shoe Carnival holds a Zacks Rank of 2 (Buy) and a Value grade of A, indicating strong potential for value investors [4] - The stock is currently trading with a P/E ratio of 12.16, significantly lower than the industry average of 16.06 [4] - SCVL's Forward P/E has fluctuated between 6.47 and 15.85 over the past year, with a median of 12.64 [4] - The P/B ratio for SCVL is 1.56, which is attractive compared to the industry's average P/B of 4.45 [5] - Over the past 12 months, SCVL's P/B has ranged from 1.03 to 2.01, with a median of 1.59 [5] - SCVL's P/CF ratio is 9.12, lower than the industry's average of 12.88, indicating a solid cash outlook [6] - The P/CF for SCVL has varied from 5.38 to 11.74 over the past year, with a median of 9.24 [6] Company Analysis: Tapestry (TPR) - Tapestry also holds a Zacks Rank of 2 (Buy) and a Value score of A, making it another attractive option for value investors [7] - The Forward P/E ratio for TPR is 9.83, which is favorable compared to the industry average of 16.06 [7] - TPR's PEG ratio is 1.63, which is higher than the industry's average PEG ratio of 1.37 [7] - The price-to-earnings ratio for TPR has ranged from 6.25 to 10.91 over the past year, with a median of 9.18 [8] - TPR's P/B ratio is 3.57, lower than the industry's average P/B of 4.45, indicating relative value [8] - The P/B for TPR has fluctuated between 2.52 and 4.19 over the past year, with a median of 3.40 [8] Conclusion - Both Shoe Carnival and Tapestry exhibit strong value metrics, suggesting they are likely undervalued in the current market [9]