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Should Value Investors Buy LaZBoy (LZB) Stock?

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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, 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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 LaZBoy (LZB - Free Report) . LZB 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 9.32, while its industry has an average P/E of 14.52. Over the past 52 weeks, LZB's Forward P/E has been as high as 11.67 and as low as 6.59, with a median of 8.14.

Investors should also recognize that LZB has a P/B ratio of 1.33. 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 company's current P/B looks solid when compared to its industry's average P/B of 3.05. LZB's P/B has been as high as 1.56 and as low as 1.11, with a median of 1.33, over the past year.

Finally, our model also underscores that LZB has a P/CF ratio of 5.65. 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 8.73. LZB's P/CF has been as high as 7.42 and as low as 4.63, with a median of 5.62, all within the past year.

These are just a handful of the figures considered in LaZBoy'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 LZB is an impressive value stock right now.

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