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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 Escalade (ESCA - Free Report) . ESCA is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 12.43, while its industry has an average P/E of 12.90. Over the past 52 weeks, ESCA's Forward P/E has been as high as 17.82 and as low as 11.62, with a median of 14.71.
Another notable valuation metric for ESCA is its P/B ratio of 1.32. 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 3.66. Over the past 12 months, ESCA's P/B has been as high as 1.97 and as low as 1.27, with a median of 1.66.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. ESCA has a P/S ratio of 0.96. This compares to its industry's average P/S of 1.41.
Finally, we should also recognize that ESCA has a P/CF ratio of 5.93. 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. ESCA's P/CF compares to its industry's average P/CF of 15.61. Over the past 52 weeks, ESCA's P/CF has been as high as 14.19 and as low as 5.74, with a median of 10.30.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Escalade is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ESCA feels like a great value stock at the moment.
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Is Escalade (ESCA) a Great Value Stock Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 Escalade (ESCA - Free Report) . ESCA is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 12.43, while its industry has an average P/E of 12.90. Over the past 52 weeks, ESCA's Forward P/E has been as high as 17.82 and as low as 11.62, with a median of 14.71.
Another notable valuation metric for ESCA is its P/B ratio of 1.32. 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 3.66. Over the past 12 months, ESCA's P/B has been as high as 1.97 and as low as 1.27, with a median of 1.66.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. ESCA has a P/S ratio of 0.96. This compares to its industry's average P/S of 1.41.
Finally, we should also recognize that ESCA has a P/CF ratio of 5.93. 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. ESCA's P/CF compares to its industry's average P/CF of 15.61. Over the past 52 weeks, ESCA's P/CF has been as high as 14.19 and as low as 5.74, with a median of 10.30.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Escalade is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ESCA feels like a great value stock at the moment.