Back to top

Image: Bigstock

Should Value Investors Buy JELDWEN (JELD) Stock?

Read MoreHide Full Article

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

JELDWEN (JELD - Free Report) is a stock many investors are watching right now. JELD is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 15.67, while its industry has an average P/E of 35.21. Over the past year, JELD's Forward P/E has been as high as 29.81 and as low as 4.41, with a median of 14.64.

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. JELD has a P/S ratio of 0.62. This compares to its industry's average P/S of 1.5.

Finally, investors should note that JELD has a P/CF ratio of 13.55. 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. JELD's P/CF compares to its industry's average P/CF of 23.65. Over the past 52 weeks, JELD's P/CF has been as high as 14.50 and as low as 3.73, with a median of 9.88.

These are only a few of the key metrics included in JELDWEN'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, JELD looks like an impressive 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