Back to top

Image: Bigstock

Are Investors Undervaluing Lifetime Brands (LCUT) Right Now?

Read MoreHide Full Article

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.

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 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 company to watch right now is Lifetime Brands (LCUT - Free Report) . LCUT is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 11.49 right now. For comparison, its industry sports an average P/E of 15.05. Over the past year, LCUT's Forward P/E has been as high as 15.76 and as low as 5.31, with a median of 9.81.

Investors should also note that LCUT holds a PEG ratio of 0.88. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. LCUT's industry has an average PEG of 1.45 right now. Within the past year, LCUT's PEG has been as high as 1.21 and as low as 0.35, with a median of 0.70.

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 0.29. This compares to its industry's average P/S of 0.67.

Finally, our model also underscores that LCUT has a P/CF ratio of 8.06. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. LCUT's P/CF compares to its industry's average P/CF of 16.85. Over the past year, LCUT's P/CF has been as high as 11.14 and as low as 3.29, with a median of 5.82.

These are just a handful of the figures considered in Lifetime Brands's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that LCUT is an impressive value stock right now.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Lifetime Brands, Inc. (LCUT) - free report >>

Published in