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.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 Callaway Golf . ELY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 16.87, while its industry has an average P/E of 29.81. ELY's Forward P/E has been as high as 18.81 and as low as 13.15, with a median of 15.81, all within the past year.
ELY is also sporting a PEG ratio of 0.68. 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. ELY's industry currently sports an average PEG of 1.99. Within the past year, ELY's PEG has been as high as 0.75 and as low as 0.53, with a median of 0.63.
Investors should also recognize that ELY has a P/B ratio of 2.46. 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 attractive against its industry's average P/B of 4.93. ELY's P/B has been as high as 2.61 and as low as 1.80, with a median of 2.17, over the past year.
Finally, we should also recognize that ELY has a P/CF ratio of 14.28. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 27.61. Within the past 12 months, ELY's P/CF has been as high as 16.89 and as low as 10.43, with a median of 13.01.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Callaway Golf is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ELY feels like a great value stock at the moment.
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Are Investors Undervaluing Callaway Golf (ELY) Right Now?
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.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 Callaway Golf . ELY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 16.87, while its industry has an average P/E of 29.81. ELY's Forward P/E has been as high as 18.81 and as low as 13.15, with a median of 15.81, all within the past year.
ELY is also sporting a PEG ratio of 0.68. 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. ELY's industry currently sports an average PEG of 1.99. Within the past year, ELY's PEG has been as high as 0.75 and as low as 0.53, with a median of 0.63.
Investors should also recognize that ELY has a P/B ratio of 2.46. 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 attractive against its industry's average P/B of 4.93. ELY's P/B has been as high as 2.61 and as low as 1.80, with a median of 2.17, over the past year.
Finally, we should also recognize that ELY has a P/CF ratio of 14.28. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 27.61. Within the past 12 months, ELY's P/CF has been as high as 16.89 and as low as 10.43, with a median of 13.01.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Callaway Golf is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ELY feels like a great value stock at the moment.