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Are Investors Undervaluing These Consumer Discretionary Stocks Right Now?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 to watch right now is Brunswick (BC - Free Report) . BC 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 10.61, while its industry has an average P/E of 25.38. Over the last 12 months, BC's Forward P/E has been as high as 17.25 and as low as 10.05, with a median of 12.21.
Another valuation metric that we should highlight is BC's P/B ratio of 4.07. 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 10.41. Over the past year, BC's P/B has been as high as 5.56 and as low as 3.77, with a median of 4.49.
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. BC has a P/S ratio of 1.36. This compares to its industry's average P/S of 1.53.
Finally, investors will want to recognize that BC has a P/CF ratio of 10.08. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. BC's P/CF compares to its industry's average P/CF of 23.54. Over the past 52 weeks, BC's P/CF has been as high as 16.10 and as low as 9.34, with a median of 11.49.
OneWater Marine (ONEW - Free Report) may be another strong Leisure and Recreation Products stock to add to your shortlist. ONEW is a # 1 (Strong Buy) stock with a Value grade of A.
OneWater Marine sports a P/B ratio of 3.30 as well; this compares to its industry's price-to-book ratio of 10.41. In the past 52 weeks, ONEW's P/B has been as high as 3.84, as low as 2.35, with a median of 2.89.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Brunswick and OneWater Marine are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BC and ONEW feels like a great value stock at the moment.
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Are Investors Undervaluing These Consumer Discretionary Stocks Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 to watch right now is Brunswick (BC - Free Report) . BC 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 10.61, while its industry has an average P/E of 25.38. Over the last 12 months, BC's Forward P/E has been as high as 17.25 and as low as 10.05, with a median of 12.21.
Another valuation metric that we should highlight is BC's P/B ratio of 4.07. 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 10.41. Over the past year, BC's P/B has been as high as 5.56 and as low as 3.77, with a median of 4.49.
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. BC has a P/S ratio of 1.36. This compares to its industry's average P/S of 1.53.
Finally, investors will want to recognize that BC has a P/CF ratio of 10.08. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. BC's P/CF compares to its industry's average P/CF of 23.54. Over the past 52 weeks, BC's P/CF has been as high as 16.10 and as low as 9.34, with a median of 11.49.
OneWater Marine (ONEW - Free Report) may be another strong Leisure and Recreation Products stock to add to your shortlist. ONEW is a # 1 (Strong Buy) stock with a Value grade of A.
OneWater Marine sports a P/B ratio of 3.30 as well; this compares to its industry's price-to-book ratio of 10.41. In the past 52 weeks, ONEW's P/B has been as high as 3.84, as low as 2.35, with a median of 2.89.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Brunswick and OneWater Marine are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BC and ONEW feels like a great value stock at the moment.