While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 stock to keep an eye on is Ethan Allen Interiors Inc. (ETD - Free Report) . ETD is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 8.57, while its industry has an average P/E of 11. Over the past 52 weeks, ETD's Forward P/E has been as high as 15.50 and as low as 7.35, with a median of 8.95.
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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. ETD has a P/S ratio of 0.91. This compares to its industry's average P/S of 1.08.
Finally, we should also recognize that ETD has a P/CF ratio of 7.12. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. ETD's P/CF compares to its industry's average P/CF of 12.70. Over the past year, ETD's P/CF has been as high as 24.07 and as low as 6.14, with a median of 7.94.
If you're looking for another solid Retail - Home Furnishings value stock, take a look at Haverty Furniture Companies (HVT - Free Report) . HVT is a # 2 (Buy) stock with a Value score of A.
Additionally, Haverty Furniture Companies has a P/B ratio of 2.12 while its industry's price-to-book ratio sits at 6.93. For HVT, this valuation metric has been as high as 3.50, as low as 1.75, with a median of 2.23 over the past year.
These are only a few of the key metrics included in Ethan Allen Interiors Inc. and Haverty Furniture Companies strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, ETD and HVT look like an impressive value stock at the moment.
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 stock to keep an eye on is Ethan Allen Interiors Inc. (ETD - Free Report) . ETD is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 8.57, while its industry has an average P/E of 11. Over the past 52 weeks, ETD's Forward P/E has been as high as 15.50 and as low as 7.35, with a median of 8.95.
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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. ETD has a P/S ratio of 0.91. This compares to its industry's average P/S of 1.08.
Finally, we should also recognize that ETD has a P/CF ratio of 7.12. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. ETD's P/CF compares to its industry's average P/CF of 12.70. Over the past year, ETD's P/CF has been as high as 24.07 and as low as 6.14, with a median of 7.94.
If you're looking for another solid Retail - Home Furnishings value stock, take a look at Haverty Furniture Companies (HVT - Free Report) . HVT is a # 2 (Buy) stock with a Value score of A.
Additionally, Haverty Furniture Companies has a P/B ratio of 2.12 while its industry's price-to-book ratio sits at 6.93. For HVT, this valuation metric has been as high as 3.50, as low as 1.75, with a median of 2.23 over the past year.
These are only a few of the key metrics included in Ethan Allen Interiors Inc. and Haverty Furniture Companies strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, ETD and HVT look like an impressive value stock at the moment.
Buy 5 Stocks BEFORE Election Day
Biden or Trump? Zacks is releasing a FREE Special Report, Profit from the 2024 Presidential Election (no matter who wins).
Since 1950, presidential election years have been strong for the market. This report names 5 timely stocks to ride the wave of electoral excitement.
They include a medical manufacturer that gained +11,000% in the last 15 years… a rental company absolutely crushing its sector… an energy powerhouse planning to grow its already large dividend by 25%... an aerospace and defense standout that just landed a potentially $80 billion contract… and a giant chipmaker building huge plants in the U.S.
Don’t Wait. Download FREE >>
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