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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.
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.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality 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 has a Forward P/E ratio of 8.28. This compares to its industry's average Forward P/E of 19.16. Over the past 52 weeks, BC's Forward P/E has been as high as 17.25 and as low as 8.17, with a median of 11.39.
We should also highlight that BC has a P/B ratio of 3.45. 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 stock's P/B looks solid versus its industry's average P/B of 5.86. Over the past year, BC's P/B has been as high as 5.56 and as low as 3.39, with a median of 4.27.
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. BC has a P/S ratio of 1.18. This compares to its industry's average P/S of 1.37.
If you're looking for another solid Leisure and Recreation Products value stock, take a look at OneWater Marine (ONEW - Free Report) . ONEW is a # 2 (Buy) stock with a Value score of A.
OneWater Marine sports a P/B ratio of 2.02 as well; this compares to its industry's price-to-book ratio of 5.86. In the past 52 weeks, ONEW's P/B has been as high as 3.84, as low as 2.02, with a median of 2.86.
Value investors will likely look at more than just these metrics, but the above data helps show that Brunswick and OneWater Marine are likely undervalued currently. And when considering the strength of its earnings outlook, BC and ONEW sticks out as one of the market's strongest value stocks.
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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.
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.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality 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 has a Forward P/E ratio of 8.28. This compares to its industry's average Forward P/E of 19.16. Over the past 52 weeks, BC's Forward P/E has been as high as 17.25 and as low as 8.17, with a median of 11.39.
We should also highlight that BC has a P/B ratio of 3.45. 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 stock's P/B looks solid versus its industry's average P/B of 5.86. Over the past year, BC's P/B has been as high as 5.56 and as low as 3.39, with a median of 4.27.
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. BC has a P/S ratio of 1.18. This compares to its industry's average P/S of 1.37.
If you're looking for another solid Leisure and Recreation Products value stock, take a look at OneWater Marine (ONEW - Free Report) . ONEW is a # 2 (Buy) stock with a Value score of A.
OneWater Marine sports a P/B ratio of 2.02 as well; this compares to its industry's price-to-book ratio of 5.86. In the past 52 weeks, ONEW's P/B has been as high as 3.84, as low as 2.02, with a median of 2.86.
Value investors will likely look at more than just these metrics, but the above data helps show that Brunswick and OneWater Marine are likely undervalued currently. And when considering the strength of its earnings outlook, BC and ONEW sticks out as one of the market's strongest value stocks.