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Are Investors Undervaluing These Consumer Discretionary Stocks Right Now?
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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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is Funko (FNKO - Free Report) . FNKO is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 15.18, which compares to its industry's average of 19.94. Over the past 52 weeks, FNKO's Forward P/E has been as high as 29.67 and as low as 11.44, with a median of 17.70.
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. FNKO has a P/S ratio of 1.04. This compares to its industry's average P/S of 1.11.
Another great Consumer Products - Discretionary stock you could consider is Lifetime Brands (LCUT - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Lifetime Brands is currently trading with a Forward P/E ratio of 10.82 while its PEG ratio sits at 0.77. Both of the company's metrics compare favorably to its industry's average P/E of 19.94 and average PEG ratio of 0.51.
LCUT's Forward P/E has been as high as 14.37 and as low as 8.45, with a median of 11.13. During the same time period, its PEG ratio has been as high as 1.11, as low as 0.60, with a median of 0.80.
Lifetime Brands also has a P/B ratio of 1.40 compared to its industry's price-to-book ratio of 8.04. Over the past year, its P/B ratio has been as high as 1.79, as low as 1.21, with a median of 1.43.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Funko and Lifetime Brands are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, FNKO and LCUT feels like a great value stock at the moment.
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Are Investors Undervaluing These Consumer Discretionary Stocks 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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is Funko (FNKO - Free Report) . FNKO is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 15.18, which compares to its industry's average of 19.94. Over the past 52 weeks, FNKO's Forward P/E has been as high as 29.67 and as low as 11.44, with a median of 17.70.
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. FNKO has a P/S ratio of 1.04. This compares to its industry's average P/S of 1.11.
Another great Consumer Products - Discretionary stock you could consider is Lifetime Brands (LCUT - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Lifetime Brands is currently trading with a Forward P/E ratio of 10.82 while its PEG ratio sits at 0.77. Both of the company's metrics compare favorably to its industry's average P/E of 19.94 and average PEG ratio of 0.51.
LCUT's Forward P/E has been as high as 14.37 and as low as 8.45, with a median of 11.13. During the same time period, its PEG ratio has been as high as 1.11, as low as 0.60, with a median of 0.80.
Lifetime Brands also has a P/B ratio of 1.40 compared to its industry's price-to-book ratio of 8.04. Over the past year, its P/B ratio has been as high as 1.79, as low as 1.21, with a median of 1.43.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Funko and Lifetime Brands are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, FNKO and LCUT feels like a great value stock at the moment.