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Are Investors Undervaluing LaZBoy (LZB) Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

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 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.

LaZBoy (LZB - Free Report) is a stock many investors are watching right now. LZB is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 9.30, which compares to its industry's average of 14.12. LZB's Forward P/E has been as high as 11.67 and as low as 6.59, with a median of 8.19, all within the past year.

We should also highlight that LZB has a P/B ratio of 1.32. The P/B ratio is used to compare a stock's market value with 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 3.06. Over the past year, LZB's P/B has been as high as 1.56 and as low as 1.11, with a median of 1.33.

Finally, we should also recognize that LZB has a P/CF ratio of 5.59. 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. LZB's P/CF compares to its industry's average P/CF of 8.55. Over the past 52 weeks, LZB's P/CF has been as high as 7.42 and as low as 4.63, with a median of 5.60.

These are only a few of the key metrics included in LaZBoy's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, LZB looks like an impressive value stock at the moment.

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