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Should Value Investors Buy Electrolux (ELUXY) Stock?

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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.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company value investors might notice is Electrolux (ELUXY - Free Report) . ELUXY is currently sporting a Zacks Rank #1 (Strong Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 5.13, which compares to its industry's average of 8.31. Over the last 12 months, ELUXY's Forward P/E has been as high as 333.07 and as low as 4.80, with a median of 7.38.

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. ELUXY has a P/S ratio of 0.14. This compares to its industry's average P/S of 0.2.

Finally, investors should note that ELUXY has a P/CF ratio of 2.46. 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. ELUXY's current P/CF looks attractive when compared to its industry's average P/CF of 3.49. Within the past 12 months, ELUXY's P/CF has been as high as 32.65 and as low as 2.46, with a median of 4.67.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Electrolux is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ELUXY feels like a great value stock at the moment.

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