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Is Lifetime Brands (LCUT) a Great Value Stock Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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.

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 Lifetime Brands (LCUT - Free Report) . LCUT is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 10.98. This compares to its industry's average Forward P/E of 15.39. Over the past 52 weeks, LCUT's Forward P/E has been as high as 15.76 and as low as 5.31, with a median of 8.63.

LCUT is also sporting a PEG ratio of 0.84. 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. LCUT's PEG compares to its industry's average PEG of 1.48. Over the last 12 months, LCUT's PEG has been as high as 1.21 and as low as 0.35, with a median of 0.56.

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. LCUT has a P/S ratio of 0.28. This compares to its industry's average P/S of 0.81.

Finally, we should also recognize that LCUT has a P/CF ratio of 6.66. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 16.85. Within the past 12 months, LCUT's P/CF has been as high as 11.14 and as low as 3.29, with a median of 5.65.

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


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