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Are Investors Undervaluing Ethan Allen Interiors Inc. (ETD) Right Now?

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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.

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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

Ethan Allen Interiors Inc. (ETD - Free Report) is a stock many investors are watching right now. ETD is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 8.85 right now. For comparison, its industry sports an average P/E of 10.40. Over the past 52 weeks, ETD's Forward P/E has been as high as 9.27 and as low as 6.55, with a median of 8.15.

Finally, investors should note that ETD has a P/CF ratio of 5.41. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 8.46. Over the past 52 weeks, ETD's P/CF has been as high as 6.50 and as low as 4.20, with a median of 5.31.

Another great Retail - Home Furnishings stock you could consider is Haverty Furniture Companies (HVT - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.

Furthermore, Haverty Furniture Companies holds a P/B ratio of 1.63 and its industry's price-to-book ratio is 6.73. HVT's P/B has been as high as 2.11, as low as 1.42, with a median of 1.76 over the past 12 months.

These are only a few of the key metrics included in Ethan Allen Interiors Inc. and Haverty Furniture Companies strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, ETD and HVT look like an impressive value stock at the moment.


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Haverty Furniture Companies, Inc. (HVT) - free report >>

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