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Is MCBC Holdings (MCFT) a Great Value Stock Right Now?

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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.

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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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.

MCBC Holdings (MCFT - Free Report) is a stock many investors are watching right now. MCFT is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with P/E ratio of 9.11 right now. For comparison, its industry sports an average P/E of 14.34. Over the past year, MCFT's Forward P/E has been as high as 15.89 and as low as 9.11, with a median of 12.44.

MCFT is also sporting a PEG ratio of 0.61. 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. MCFT's industry has an average PEG of 0.80 right now. Over the past 52 weeks, MCFT's PEG has been as high as 1.06 and as low as 0.61, with a median of 0.83.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. MCFT has a P/S ratio of 1.33. This compares to its industry's average P/S of 1.41.

Finally, our model also underscores that MCFT has a P/CF ratio of 10.41. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. MCFT's current P/CF looks attractive when compared to its industry's average P/CF of 15.73. Over the past 52 weeks, MCFT's P/CF has been as high as 19.14 and as low as 10.15, with a median of 14.70.

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


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