You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating indiv idual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Is LaZBoy (LZB) Stock Undervalued Right Now?
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.
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 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 company to watch right now is LaZBoy (LZB - Free Report) . LZB is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 11.17. This compares to its industry's average Forward P/E of 16.90. Over the past 52 weeks, LZB's Forward P/E has been as high as 11.17 and as low as 6.59, with a median of 8.14.
Another valuation metric that we should highlight is LZB's P/B ratio of 1.54. 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 3.32. LZB's P/B has been as high as 1.64 and as low as 1.11, with a median of 1.34, over the past year.
Finally, investors should note that LZB has a P/CF ratio of 6.45. 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. LZB's P/CF compares to its industry's average P/CF of 9.14. Over the past year, LZB's P/CF has been as high as 7.90 and as low as 4.63, with a median of 5.67.
These figures are just a handful of the metrics value investors tend to look at, but they help show that LaZBoy is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, LZB feels like a great value stock at the moment.