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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 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.

Lifetime Brands (LCUT - Free Report) is a stock many investors are watching right now. LCUT is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 12.21 right now. For comparison, its industry sports an average P/E of 13.73. Over the last 12 months, LCUT's Forward P/E has been as high as 16.61 and as low as 4.25, with a median of 7.87.

LCUT is also sporting a PEG ratio of 0.87. 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. LCUT's industry has an average PEG of 1.72 right now. LCUT's PEG has been as high as 1.19 and as low as 0.30, with a median of 0.56, all within the past year.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. LCUT has a P/S ratio of 0.24. This compares to its industry's average P/S of 0.67.

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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