We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Are These Retail-Wholesale Stocks Undervalued Right Now?
Read MoreHide Full Article
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 stock to keep an eye on is Ethan Allen Interiors Inc. (ETD - Free Report) . ETD is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 7.81. This compares to its industry's average Forward P/E of 11.59. Over the last 12 months, ETD's Forward P/E has been as high as 16.21 and as low as 7.35, with a median of 9.81.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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. ETD has a P/S ratio of 0.82. This compares to its industry's average P/S of 1.12.
Finally, we should also recognize that ETD has a P/CF ratio of 6.92. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 19.25. Over the past 52 weeks, ETD's P/CF has been as high as 24.07 and as low as 6.55, with a median of 8.37.
Investors could also keep in mind Tempur Sealy International (TPX - Free Report) , an Retail - Home Furnishings stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Shares of Tempur Sealy International are currently trading at a forward earnings multiple of 9.58 and a PEG ratio of 0.40 compared to its industry's P/E and PEG ratios of 11.59 and 0.57, respectively.
TPX's price-to-earnings ratio has been as high as 16.25 and as low as 9.58, with a median of 13.10, while its PEG ratio has been as high as 0.88 and as low as 0.34, with a median of 0.60, all within the past year.
Furthermore, Tempur Sealy International holds a P/B ratio of 19.65 and its industry's price-to-book ratio is 7.55. TPX's P/B has been as high as 25.76, as low as 10.80, with a median of 23.33 over the past 12 months.
These are only a few of the key metrics included in Ethan Allen Interiors Inc. and Tempur Sealy International strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, ETD and TPX look like an impressive value stock at the moment.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Are These Retail-Wholesale Stocks Undervalued Right Now?
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 stock to keep an eye on is Ethan Allen Interiors Inc. (ETD - Free Report) . ETD is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 7.81. This compares to its industry's average Forward P/E of 11.59. Over the last 12 months, ETD's Forward P/E has been as high as 16.21 and as low as 7.35, with a median of 9.81.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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. ETD has a P/S ratio of 0.82. This compares to its industry's average P/S of 1.12.
Finally, we should also recognize that ETD has a P/CF ratio of 6.92. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 19.25. Over the past 52 weeks, ETD's P/CF has been as high as 24.07 and as low as 6.55, with a median of 8.37.
Investors could also keep in mind Tempur Sealy International (TPX - Free Report) , an Retail - Home Furnishings stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Shares of Tempur Sealy International are currently trading at a forward earnings multiple of 9.58 and a PEG ratio of 0.40 compared to its industry's P/E and PEG ratios of 11.59 and 0.57, respectively.
TPX's price-to-earnings ratio has been as high as 16.25 and as low as 9.58, with a median of 13.10, while its PEG ratio has been as high as 0.88 and as low as 0.34, with a median of 0.60, all within the past year.
Furthermore, Tempur Sealy International holds a P/B ratio of 19.65 and its industry's price-to-book ratio is 7.55. TPX's P/B has been as high as 25.76, as low as 10.80, with a median of 23.33 over the past 12 months.
These are only a few of the key metrics included in Ethan Allen Interiors Inc. and Tempur Sealy International strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, ETD and TPX look like an impressive value stock at the moment.