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.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
Carriage Services (CSV - Free Report) is a stock many investors are watching right now. CSV is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 14.75, while its industry has an average P/E of 15.28. Over the past year, CSV's Forward P/E has been as high as 17 and as low as 10.45, with a median of 13.56.
Investors should also note that CSV holds a PEG ratio of 0.98. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. CSV's PEG compares to its industry's average PEG of 1.32. Within the past year, CSV's PEG has been as high as 1.13 and as low as 0.70, with a median of 0.90.
Investors should also recognize that CSV has a P/B ratio of 1.76. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 3.13. Over the past 12 months, CSV's P/B has been as high as 1.91 and as low as 1.15, with a median of 1.54.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Carriage Services is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CSV feels like a great value stock at the moment.