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Should Value Investors Buy Smith & Wesson (SWBI) Stock?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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.
Smith & Wesson (SWBI - Free Report) is a stock many investors are watching right now. SWBI is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A.
We should also highlight that SWBI has a P/B ratio of 4.12. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. SWBI's current P/B looks attractive when compared to its industry's average P/B of 7.52. Within the past 52 weeks, SWBI's P/B has been as high as 5.55 and as low as 0.73, with a median of 2.22.
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. SWBI has a P/S ratio of 1. This compares to its industry's average P/S of 1.9.
These are only a few of the key metrics included in Smith & Wesson'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, SWBI looks like an impressive value stock at the moment.
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Should Value Investors Buy Smith & Wesson (SWBI) Stock?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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.
Smith & Wesson (SWBI - Free Report) is a stock many investors are watching right now. SWBI is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A.
We should also highlight that SWBI has a P/B ratio of 4.12. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. SWBI's current P/B looks attractive when compared to its industry's average P/B of 7.52. Within the past 52 weeks, SWBI's P/B has been as high as 5.55 and as low as 0.73, with a median of 2.22.
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. SWBI has a P/S ratio of 1. This compares to its industry's average P/S of 1.9.
These are only a few of the key metrics included in Smith & Wesson'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, SWBI looks like an impressive value stock at the moment.