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Is Jakks Pacific (JAKK) Stock Undervalued Right Now?

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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, 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.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company value investors might notice is Jakks Pacific (JAKK - Free Report) . JAKK is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.

Investors should also recognize that JAKK has a P/B ratio of 2.88. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 4.52. Within the past 52 weeks, JAKK's P/B has been as high as 4.82 and as low as -4.08, with a median of 1.36.

Finally, investors should note that JAKK has a P/CF ratio of 16.71. 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. JAKK's current P/CF looks attractive when compared to its industry's average P/CF of 24.02. Over the past 52 weeks, JAKK's P/CF has been as high as 21.63 and as low as -5.81, with a median of -0.89.

Value investors will likely look at more than just these metrics, but the above data helps show that Jakks Pacific is likely undervalued currently. And when considering the strength of its earnings outlook, JAKK sticks out at as one of the market's strongest value stocks.


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