Back to top

Image: Bigstock

Are Investors Undervaluing JELDWEN Holding, Inc. (JELD) Right Now?

Read MoreHide Full Article

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.

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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 JELDWEN Holding, Inc. (JELD - Free Report) . JELD is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 14.01, which compares to its industry's average of 36.36. Over the past 52 weeks, JELD's Forward P/E has been as high as 29.81 and as low as 4.41, with a median of 14.41.

Another valuation metric that we should highlight is JELD's P/B ratio of 2.66. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.77. Within the past 52 weeks, JELD's P/B has been as high as 3.30 and as low as 0.91, with a median of 2.42.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. JELD has a P/S ratio of 0.5. This compares to its industry's average P/S of 1.44.

Finally, we should also recognize that JELD has a P/CF ratio of 11.94. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 23.65. Over the past 52 weeks, JELD's P/CF has been as high as 13.55 and as low as 3.72, with a median of 9.31.

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


See More Zacks Research for These Tickers


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


JELD-WEN Holding, Inc. (JELD) - free report >>

Published in