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Should Value Investors Buy These Consumer Discretionary Stocks?
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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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 OneWater Marine (ONEW - Free Report) . ONEW is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value.
We should also highlight that ONEW has a P/B ratio of 3.66. 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 10.54. Within the past 52 weeks, ONEW's P/B has been as high as 3.84 and as low as 2.35, with a median of 2.90.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. ONEW has a P/S ratio of 0.75. This compares to its industry's average P/S of 1.56.
Finally, our model also underscores that ONEW has a P/CF ratio of 8.72. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 23.85. Over the past 52 weeks, ONEW's P/CF has been as high as 16.16 and as low as 5.75, with a median of 8.48.
Vista Outdoor (VSTO - Free Report) may be another strong Leisure and Recreation Products stock to add to your shortlist. VSTO is a # 1 (Strong Buy) stock with a Value grade of A.
Vista Outdoor sports a P/B ratio of 2.82 as well; this compares to its industry's price-to-book ratio of 10.54. In the past 52 weeks, VSTO's P/B has been as high as 3.60, as low as 2.10, with a median of 2.82.
These figures are just a handful of the metrics value investors tend to look at, but they help show that OneWater Marine and Vista Outdoor are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ONEW and VSTO feels like a great value stock at the moment.
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Should Value Investors Buy These Consumer Discretionary Stocks?
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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 OneWater Marine (ONEW - Free Report) . ONEW is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value.
We should also highlight that ONEW has a P/B ratio of 3.66. 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 10.54. Within the past 52 weeks, ONEW's P/B has been as high as 3.84 and as low as 2.35, with a median of 2.90.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. ONEW has a P/S ratio of 0.75. This compares to its industry's average P/S of 1.56.
Finally, our model also underscores that ONEW has a P/CF ratio of 8.72. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 23.85. Over the past 52 weeks, ONEW's P/CF has been as high as 16.16 and as low as 5.75, with a median of 8.48.
Vista Outdoor (VSTO - Free Report) may be another strong Leisure and Recreation Products stock to add to your shortlist. VSTO is a # 1 (Strong Buy) stock with a Value grade of A.
Vista Outdoor sports a P/B ratio of 2.82 as well; this compares to its industry's price-to-book ratio of 10.54. In the past 52 weeks, VSTO's P/B has been as high as 3.60, as low as 2.10, with a median of 2.82.
These figures are just a handful of the metrics value investors tend to look at, but they help show that OneWater Marine and Vista Outdoor are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ONEW and VSTO feels like a great value stock at the moment.