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Are Investors Undervaluing Lifetime Brands (LCUT) Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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.

One stock to keep an eye on is Lifetime Brands (LCUT - Free Report) . LCUT is currently holding a Zacks Rank #2 (Buy) and 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 15.46. 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.

Investors should also note that LCUT holds 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 currently sports an average PEG of 1.99. 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 0.26. This compares to its industry's average P/S of 0.69.

Value investors will likely look at more than just these metrics, but the above data helps show that Lifetime Brands is likely undervalued currently. And when considering the strength of its earnings outlook, LCUT sticks out as one of the market's strongest value stocks.

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