Back to top

Is Masonite (DOOR) Stock Undervalued Right Now?

Read MoreHide Full Article

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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 company to watch right now is Masonite (DOOR - Free Report) . DOOR is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 11.94, while its industry has an average P/E of 13.06. DOOR's Forward P/E has been as high as 16.92 and as low as 10.02, with a median of 12.91, all within the past year.

Another notable valuation metric for DOOR is its P/B ratio of 2.11. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 3.13. Over the past 12 months, DOOR's P/B has been as high as 2.86 and as low as 1.75, with a median of 2.32.

Finally, investors should note that DOOR has a P/CF ratio of 7.87. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. DOOR's P/CF compares to its industry's average P/CF of 10.52. Within the past 12 months, DOOR's P/CF has been as high as 9.07 and as low as 5.24, with a median of 7.86.

These are just a handful of the figures considered in Masonite'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 DOOR is an impressive value stock right now.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Masonite International Corporation (DOOR) - free report >>

Published in