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Is Masonite International (DOOR) Stock Undervalued Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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.

Masonite International (DOOR - Free Report) is a stock many investors are watching right now. DOOR is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 7.39, while its industry has an average P/E of 12.93. Over the past 52 weeks, DOOR's Forward P/E has been as high as 14.28 and as low as 6.56, with a median of 11.05.

Investors should also recognize that DOOR has a P/B ratio of 2.93. The P/B ratio pits a stock's market value against 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 3.06. DOOR's P/B has been as high as 4.17 and as low as 2.58, with a median of 3.52, over the past year.

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. DOOR has a P/S ratio of 0.68. This compares to its industry's average P/S of 1.46.

Finally, investors should note that DOOR has a P/CF ratio of 9.23. 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. This stock's P/CF looks attractive against its industry's average P/CF of 9.59. Over the past 52 weeks, DOOR's P/CF has been as high as 17.07 and as low as 8.14, with a median of 11.92.

These are just a handful of the figures considered in Masonite International's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that DOOR is an impressive value stock right now.


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