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Should Value Investors Buy Ethan Allen Interiors Inc. (ETD) Stock?
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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.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 Ethan Allen Interiors Inc. (ETD - Free Report) . ETD is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 8.22 right now. For comparison, its industry sports an average P/E of 9.93. Over the past year, ETD's Forward P/E has been as high as 9.27 and as low as 6.55, with a median of 8.39.
Finally, we should also recognize that ETD has a P/CF ratio of 5.14. 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. ETD's current P/CF looks attractive when compared to its industry's average P/CF of 8.81. Over the past 52 weeks, ETD's P/CF has been as high as 6.01 and as low as 4.20, with a median of 5.32.
Value investors will likely look at more than just these metrics, but the above data helps show that Ethan Allen Interiors Inc. Is likely undervalued currently. And when considering the strength of its earnings outlook, ETD sticks out at as one of the market's strongest value stocks.
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Should Value Investors Buy Ethan Allen Interiors Inc. (ETD) Stock?
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.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 Ethan Allen Interiors Inc. (ETD - Free Report) . ETD is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 8.22 right now. For comparison, its industry sports an average P/E of 9.93. Over the past year, ETD's Forward P/E has been as high as 9.27 and as low as 6.55, with a median of 8.39.
Finally, we should also recognize that ETD has a P/CF ratio of 5.14. 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. ETD's current P/CF looks attractive when compared to its industry's average P/CF of 8.81. Over the past 52 weeks, ETD's P/CF has been as high as 6.01 and as low as 4.20, with a median of 5.32.
Value investors will likely look at more than just these metrics, but the above data helps show that Ethan Allen Interiors Inc. Is likely undervalued currently. And when considering the strength of its earnings outlook, ETD sticks out at as one of the market's strongest value stocks.