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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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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.

Lifetime Brands (LCUT - Free Report) is a stock many investors are watching right now. 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 13.99. 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 will also notice that LCUT has a PEG ratio of 0.87. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. LCUT's PEG compares to its industry's average PEG of 1.75. Over the last 12 months, 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 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 0.33. This compares to its industry's average P/S of 0.62.

These are just a handful of the figures considered in Lifetime Brands's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that LCUT is an impressive value stock right now.

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