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Should Value Investors Buy Lifetime Brands (LCUT) Stock?

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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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One stock to keep an eye on is Lifetime Brands (LCUT - Free Report) . LCUT is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. LCUT has a P/S ratio of 0.34. This compares to its industry's average P/S of 0.86.

Finally, our model also underscores that LCUT has a P/CF ratio of 14.31. 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. LCUT's current P/CF looks attractive when compared to its industry's average P/CF of 37.40. Over the past 52 weeks, LCUT's P/CF has been as high as 52.72 and as low as 7.54, with a median of 15.41.

These are only a few of the key metrics included in Lifetime Brands'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, LCUT looks like an impressive value stock at the moment.


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