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Are Investors Undervaluing Carriage Services (CSV) Right Now?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 company value investors might notice is Carriage Services (CSV - Free Report) . CSV is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 13.69, while its industry has an average P/E of 18.90. CSV's Forward P/E has been as high as 14.15 and as low as 7.96, with a median of 11.18, all within the past year.

Investors will also notice that CSV has a PEG ratio of 0.91. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CSV's industry currently sports an average PEG of 1.84. Over the past 52 weeks, CSV's PEG has been as high as 0.94 and as low as 0.53, with a median of 0.75.

Investors should also recognize that CSV has a P/B ratio of 3.07. 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 6.43. Over the past 12 months, CSV's P/B has been as high as 3.07 and as low as 1.87, with a median of 2.25.

Finally, we should also recognize that CSV has a P/CF ratio of 9.93. 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. CSV's P/CF compares to its industry's average P/CF of 14.02. Within the past 12 months, CSV's P/CF has been as high as 9.93 and as low as 5.86, with a median of 7.33.

These are only a few of the key metrics included in Carriage Services'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, CSV looks like an impressive value stock at the moment.


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