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Is Carlisle (CSL) Stock Undervalued Right Now?

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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.

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.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One stock to keep an eye on is Carlisle (CSL - Free Report) . CSL is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 16.87, while its industry has an average P/E of 18.63. Over the past 52 weeks, CSL's Forward P/E has been as high as 19.02 and as low as 13.49, with a median of 16.40.

CSL is also sporting a PEG ratio of 1.12. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CSL's PEG compares to its industry's average PEG of 2.35. Over the past 52 weeks, CSL's PEG has been as high as 1.27 and as low as 0.90, with a median of 1.09.

Another notable valuation metric for CSL is its P/B ratio of 3.16. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. CSL's current P/B looks attractive when compared to its industry's average P/B of 6.49. Within the past 52 weeks, CSL's P/B has been as high as 3.20 and as low as 2.05, with a median of 2.79.

These are only a few of the key metrics included in Carlisle'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, CSL looks like an impressive value stock at the moment.


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