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Should Value Investors Buy JELDWEN Holding, Inc. (JELD) Stock?

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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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 company value investors might notice is JELDWEN Holding, Inc. (JELD - Free Report) . JELD is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 15.36, which compares to its industry's average of 38.38. Over the last 12 months, JELD's Forward P/E has been as high as 29.81 and as low as 4.41, with a median of 14.03.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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. JELD has a P/S ratio of 0.57. This compares to its industry's average P/S of 1.58.

Finally, our model also underscores that JELD has a P/CF ratio of 12.81. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. JELD's current P/CF looks attractive when compared to its industry's average P/CF of 23.65. Over the past year, JELD's P/CF has been as high as 13.55 and as low as 3.72, with a median of 8.49.

These are only a few of the key metrics included in JELDWEN Holding, Inc.'s strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, JELD looks like an impressive value stock at the moment.


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