Should Value Investors Buy MasterCraft Boat (MCFT) Stock?

MCFT

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 company to watch right now is MasterCraft Boat (MCFT - Free Report) . MCFT 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 7.83, while its industry has an average P/E of 21.90. Over the past 52 weeks, MCFT's Forward P/E has been as high as 7.83 and as low as 4.04, with a median of 5.08.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. MCFT has a P/S ratio of 0.83. This compares to its industry's average P/S of 0.94.

These figures are just a handful of the metrics value investors tend to look at, but they help show that MasterCraft Boat is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, MCFT feels like a great value stock at the moment.

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