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Should Value Investors Buy Leggett & Platt (LEG) 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.
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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
Leggett & Platt (LEG - Free Report) is a stock many investors are watching right now. LEG is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 8.66, while its industry has an average P/E of 9.32. Over the past 52 weeks, LEG's Forward P/E has been as high as 11.45 and as low as 5.92, with a median of 8.37.
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 preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. LEG has a P/S ratio of 0.29. This compares to its industry's average P/S of 0.39.
Finally, investors should note that LEG has a P/CF ratio of 4.78. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. LEG's current P/CF looks attractive when compared to its industry's average P/CF of 7.03. LEG's P/CF has been as high as 61.65 and as low as 3.05, with a median of 4.80, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Leggett & Platt is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, LEG feels like a great value stock at the moment.
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Should Value Investors Buy Leggett & Platt (LEG) 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.
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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
Leggett & Platt (LEG - Free Report) is a stock many investors are watching right now. LEG is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 8.66, while its industry has an average P/E of 9.32. Over the past 52 weeks, LEG's Forward P/E has been as high as 11.45 and as low as 5.92, with a median of 8.37.
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 preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. LEG has a P/S ratio of 0.29. This compares to its industry's average P/S of 0.39.
Finally, investors should note that LEG has a P/CF ratio of 4.78. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. LEG's current P/CF looks attractive when compared to its industry's average P/CF of 7.03. LEG's P/CF has been as high as 61.65 and as low as 3.05, with a median of 4.80, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Leggett & Platt is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, LEG feels like a great value stock at the moment.