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Is Lifetime Brands (LCUT) 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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 stock to keep an eye on is Lifetime Brands (LCUT - Free Report) . LCUT is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A.

We also note that LCUT holds a PEG ratio of 0.77. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. LCUT's industry has an average PEG of 1.53 right now. Within the past year, LCUT's PEG has been as high as 1.11 and as low as 0.66, with a median of 0.90.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. LCUT has a P/S ratio of 0.45. This compares to its industry's average P/S of 1.08.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Lifetime Brands is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, LCUT feels like a great value stock at the moment.


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