Benign Growth For Caleres, Inc. (NYSE:CAL) Underpins Its Share Price
Caleres, Inc.’s (NYSE:CAL) price-to-earnings (or “P/E”) ratio of 5.9x might make it look like a strong buy right now compared to the market in the United States, where around half of the companies have P/E ratios above 19x and even P/E’s above 34x are quite common. Nonetheless, we’d need to dig a little deeper to determine if there is a rational basis for the highly reduced P/E.
For instance, Caleres’ receding earnings in recent times would have to be some food for thought. One possibility is that the P/E is low because investors think the company won’t do enough to avoid underperforming the broader market in the…
