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Are These Consumer Discretionary Stocks 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is Brunswick (BC - Free Report) . BC is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 9.77, which compares to its industry's average of 20.01. BC's Forward P/E has been as high as 17.25 and as low as 9.06, with a median of 11.97, all within the past year.
We should also highlight that BC has a P/B ratio of 3.66. 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 stock's P/B looks solid versus its industry's average P/B of 8.41. Over the past 12 months, BC's P/B has been as high as 5.56 and as low as 3.39, with a median of 4.37.
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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. BC has a P/S ratio of 1.19. This compares to its industry's average P/S of 1.55.
Finally, we should also recognize that BC has a P/CF ratio of 9.20. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 19.03. Within the past 12 months, BC's P/CF has been as high as 16.10 and as low as 8.50, with a median of 10.51.
Another great Leisure and Recreation Products stock you could consider is OneWater Marine (ONEW - Free Report) , which is a # 1 (Strong Buy) stock with a Value Score of A.
OneWater Marine also has a P/B ratio of 3.06 compared to its industry's price-to-book ratio of 8.41. Over the past year, its P/B ratio has been as high as 3.84, as low as 2.35, with a median of 2.94.
These are only a few of the key metrics included in Brunswick and OneWater Marine strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, BC and ONEW look like an impressive value stock at the moment.
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Are These Consumer Discretionary Stocks Undervalued Right Now?
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is Brunswick (BC - Free Report) . BC is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 9.77, which compares to its industry's average of 20.01. BC's Forward P/E has been as high as 17.25 and as low as 9.06, with a median of 11.97, all within the past year.
We should also highlight that BC has a P/B ratio of 3.66. 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 stock's P/B looks solid versus its industry's average P/B of 8.41. Over the past 12 months, BC's P/B has been as high as 5.56 and as low as 3.39, with a median of 4.37.
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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. BC has a P/S ratio of 1.19. This compares to its industry's average P/S of 1.55.
Finally, we should also recognize that BC has a P/CF ratio of 9.20. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 19.03. Within the past 12 months, BC's P/CF has been as high as 16.10 and as low as 8.50, with a median of 10.51.
Another great Leisure and Recreation Products stock you could consider is OneWater Marine (ONEW - Free Report) , which is a # 1 (Strong Buy) stock with a Value Score of A.
OneWater Marine also has a P/B ratio of 3.06 compared to its industry's price-to-book ratio of 8.41. Over the past year, its P/B ratio has been as high as 3.84, as low as 2.35, with a median of 2.94.
These are only a few of the key metrics included in Brunswick and OneWater Marine strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, BC and ONEW look like an impressive value stock at the moment.