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Are Investors Undervaluing Masonite International (DOOR) Right Now?

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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.

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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One stock to keep an eye on is Masonite International (DOOR - Free Report) . DOOR is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 12.98. This compares to its industry's average Forward P/E of 28.06. Over the past year, DOOR's Forward P/E has been as high as 14.15 and as low as 8.34, with a median of 10.70.

Investors should also recognize that DOOR has a P/B ratio of 3.34. 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 3.49. Within the past 52 weeks, DOOR's P/B has been as high as 3.36 and as low as 1.99, with a median of 2.60.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. DOOR has a P/S ratio of 1.02. This compares to its industry's average P/S of 1.62.

Finally, investors should note that DOOR has a P/CF ratio of 11.64. 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. DOOR's P/CF compares to its industry's average P/CF of 27.23. DOOR's P/CF has been as high as 11.72 and as low as 6.38, with a median of 7.84, all within the past year.

These are just a handful of the figures considered in Masonite International'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 DOOR is an impressive value stock right now.


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