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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 Ethan Allen . ETH 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 9.54, while its industry has an average P/E of 15.91. Over the past 52 weeks, ETH's Forward P/E has been as high as 26 and as low as 9.32, with a median of 14.04.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. ETH has a P/S ratio of 0.93. This compares to its industry's average P/S of 1.16.
Finally, investors should note that ETH has a P/CF ratio of 13.13. 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 20.86. Within the past 12 months, ETH's P/CF has been as high as 24.16 and as low as 12.46, with a median of 16.96.
These are only a few of the key metrics included in Ethan Allen'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, ETH looks like an impressive value stock at the moment.
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Are Investors Undervaluing Ethan Allen (ETH) Right Now?
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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 Ethan Allen . ETH 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 9.54, while its industry has an average P/E of 15.91. Over the past 52 weeks, ETH's Forward P/E has been as high as 26 and as low as 9.32, with a median of 14.04.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. ETH has a P/S ratio of 0.93. This compares to its industry's average P/S of 1.16.
Finally, investors should note that ETH has a P/CF ratio of 13.13. 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 20.86. Within the past 12 months, ETH's P/CF has been as high as 24.16 and as low as 12.46, with a median of 16.96.
These are only a few of the key metrics included in Ethan Allen'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, ETH looks like an impressive value stock at the moment.