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Are Investors Undervaluing Funko-A (FNKO) Right Now?

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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.

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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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.

One company value investors might notice is Funko-A (FNKO - Free Report) . FNKO is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 16.30, which compares to its industry's average of 25.18. Over the past year, FNKO's Forward P/E has been as high as 29.67 and as low as 12.07, with a median of 19.99.

FNKO is also sporting a PEG ratio of 0.60. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. FNKO's industry has an average PEG of 1.16 right now. Within the past year, FNKO's PEG has been as high as 3.35 and as low as 0.54, with a median of 0.99.

We should also highlight that FNKO has a P/B ratio of 2.93. 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. This company's current P/B looks solid when compared to its industry's average P/B of 8.62. Over the past year, FNKO's P/B has been as high as 3.95 and as low as 0.94, with a median of 1.96.

These are only a few of the key metrics included in Funko-A'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, FNKO looks like an impressive value stock at the moment.


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