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LCUT or PBH: Which Is the Better Value Stock Right Now?
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Investors interested in Consumer Products - Discretionary stocks are likely familiar with Lifetime Brands (LCUT - Free Report) and Prestige Brands (PBH - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Right now, Lifetime Brands is sporting a Zacks Rank of #1 (Strong Buy), while Prestige Brands has a Zacks Rank of #4 (Sell). This means that LCUT's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
LCUT currently has a forward P/E ratio of 8.32, while PBH has a forward P/E of 13.49. We also note that LCUT has a PEG ratio of 0.59. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. PBH currently has a PEG ratio of 1.69.
Another notable valuation metric for LCUT is its P/B ratio of 0.47. 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. By comparison, PBH has a P/B of 1.99.
These metrics, and several others, help LCUT earn a Value grade of A, while PBH has been given a Value grade of C.
LCUT has seen stronger estimate revision activity and sports more attractive valuation metrics than PBH, so it seems like value investors will conclude that LCUT is the superior option right now.
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LCUT or PBH: Which Is the Better Value Stock Right Now?
Investors interested in Consumer Products - Discretionary stocks are likely familiar with Lifetime Brands (LCUT - Free Report) and Prestige Brands (PBH - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Right now, Lifetime Brands is sporting a Zacks Rank of #1 (Strong Buy), while Prestige Brands has a Zacks Rank of #4 (Sell). This means that LCUT's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
LCUT currently has a forward P/E ratio of 8.32, while PBH has a forward P/E of 13.49. We also note that LCUT has a PEG ratio of 0.59. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. PBH currently has a PEG ratio of 1.69.
Another notable valuation metric for LCUT is its P/B ratio of 0.47. 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. By comparison, PBH has a P/B of 1.99.
These metrics, and several others, help LCUT earn a Value grade of A, while PBH has been given a Value grade of C.
LCUT has seen stronger estimate revision activity and sports more attractive valuation metrics than PBH, so it seems like value investors will conclude that LCUT is the superior option right now.