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Is La-Z-Boy (LZB) Stock Undervalued Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 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 value investors might notice is La-Z-Boy (LZB - Free Report) . LZB is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 13.64. This compares to its industry's average Forward P/E of 14.54. LZB's Forward P/E has been as high as 81.33 and as low as 6.51, with a median of 13.81, all within the past year.

We should also highlight that LZB has a P/B ratio of 2.43. 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. LZB's current P/B looks attractive when compared to its industry's average P/B of 3.16. Over the past year, LZB's P/B has been as high as 2.43 and as low as 1.05, with a median of 1.99.

These are only a few of the key metrics included in La-Z-Boy'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, LZB looks like an impressive value stock at the moment.


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