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Is JELDWEN (JELD) Stock Undervalued 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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 (JELD - Free Report) . JELD is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 13.45. This compares to its industry's average Forward P/E of 33.25. 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 14.72.

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. JELD has a P/S ratio of 0.6. This compares to its industry's average P/S of 1.5.

Finally, our model also underscores that JELD has a P/CF ratio of 13.02. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 23.65. Within the past 12 months, JELD's P/CF has been as high as 14.14 and as low as 3.73, with a median of 10.52.

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


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