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Are These Retail-Wholesale Stocks a Great Value Stocks 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.
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 Ethan Allen Interiors Inc. (ETD - Free Report) . ETD is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock holds a P/E ratio of 7.88, while its industry has an average P/E of 11.35. ETD's Forward P/E has been as high as 15.50 and as low as 7.35, with a median of 9.49, all within the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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. ETD has a P/S ratio of 0.86. This compares to its industry's average P/S of 1.13.
Finally, we should also recognize that ETD has a P/CF ratio of 6.57. 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. ETD's current P/CF looks attractive when compared to its industry's average P/CF of 18.94. Over the past 52 weeks, ETD's P/CF has been as high as 24.07 and as low as 6.23, with a median of 8.12.
Another great Retail - Home Furnishings stock you could consider is Tempur Sealy International (TPX - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Tempur Sealy International is trading at a forward earnings multiple of 10.24 at the moment, with a PEG ratio of 0.43. This compares to its industry's average P/E of 11.35 and average PEG ratio of 0.66.
Over the last 12 months, TPX's P/E has been as high as 16.25, as low as 9.58, with a median of 13.02, and its PEG ratio has been as high as 0.88, as low as 0.34, with a median of 0.60.
Additionally, Tempur Sealy International has a P/B ratio of 21.17 while its industry's price-to-book ratio sits at 7.05. For TPX, this valuation metric has been as high as 25.76, as low as 12.76, with a median of 23.33 over the past year.
These are only a few of the key metrics included in Ethan Allen Interiors Inc. and Tempur Sealy International strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, ETD and TPX look like an impressive value stock at the moment.
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Are These Retail-Wholesale Stocks a Great Value Stocks 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.
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 Ethan Allen Interiors Inc. (ETD - Free Report) . ETD is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock holds a P/E ratio of 7.88, while its industry has an average P/E of 11.35. ETD's Forward P/E has been as high as 15.50 and as low as 7.35, with a median of 9.49, all within the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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. ETD has a P/S ratio of 0.86. This compares to its industry's average P/S of 1.13.
Finally, we should also recognize that ETD has a P/CF ratio of 6.57. 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. ETD's current P/CF looks attractive when compared to its industry's average P/CF of 18.94. Over the past 52 weeks, ETD's P/CF has been as high as 24.07 and as low as 6.23, with a median of 8.12.
Another great Retail - Home Furnishings stock you could consider is Tempur Sealy International (TPX - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Tempur Sealy International is trading at a forward earnings multiple of 10.24 at the moment, with a PEG ratio of 0.43. This compares to its industry's average P/E of 11.35 and average PEG ratio of 0.66.
Over the last 12 months, TPX's P/E has been as high as 16.25, as low as 9.58, with a median of 13.02, and its PEG ratio has been as high as 0.88, as low as 0.34, with a median of 0.60.
Additionally, Tempur Sealy International has a P/B ratio of 21.17 while its industry's price-to-book ratio sits at 7.05. For TPX, this valuation metric has been as high as 25.76, as low as 12.76, with a median of 23.33 over the past year.
These are only a few of the key metrics included in Ethan Allen Interiors Inc. and Tempur Sealy International strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, ETD and TPX look like an impressive value stock at the moment.