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Should Value Investors Buy Lifetime Brands (LCUT) 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.

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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One stock to keep an eye on is Lifetime Brands (LCUT - Free Report) . LCUT 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 12.21, which compares to its industry's average of 13.86. LCUT's Forward P/E has been as high as 16.61 and as low as 4.25, with a median of 7.87, all within the past year.

Investors should also note that LCUT holds a PEG ratio of 0.87. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. LCUT's PEG compares to its industry's average PEG of 1.72. Over the past 52 weeks, LCUT's PEG has been as high as 1.19 and as low as 0.30, with a median of 0.56.

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 preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. LCUT has a P/S ratio of 0.29. This compares to its industry's average P/S of 0.63.

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

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