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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.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
LaZBoy (LZB - Free Report) is a stock many investors are watching right now. LZB is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 7.28 right now. For comparison, its industry sports an average P/E of 13.65. Over the past 52 weeks, LZB's Forward P/E has been as high as 10.83 and as low as 6.59, with a median of 8.47.
We should also highlight that LZB has a P/B ratio of 1.18. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 3.32. Over the past 12 months, LZB's P/B has been as high as 2.12 and as low as 1.13, with a median of 1.49.
Finally, our model also underscores that LZB has a P/CF ratio of 4.88. 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. LZB's P/CF compares to its industry's average P/CF of 9.86. Over the past year, LZB's P/CF has been as high as 10.21 and as low as 4.67, with a median of 7.07.
Investors could also keep in mind Sleep Number (SNBR - Free Report) , an Furniture stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Shares of Sleep Number are currently trading at a forward earnings multiple of 8.13 and a PEG ratio of 0.64 compared to its industry's P/E and PEG ratios of 13.65 and 0.54, respectively.
SNBR's Forward P/E has been as high as 12.62 and as low as 5.70, with a median of 9.36. During the same time period, its PEG ratio has been as high as 1.89, as low as 0.45, with a median of 0.73.
Furthermore, Sleep Number holds a P/B ratio of -1.62 and its industry's price-to-book ratio is 3.32. SNBR's P/B has been as high as -1.48, as low as -4.75, with a median of -2.35 over the past 12 months.
These are only a few of the key metrics included in LaZBoy and Sleep Number strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, LZB and SNBR look like an impressive value stock at the moment.
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Is LaZBoy (LZB) a Great Value Stock 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.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
LaZBoy (LZB - Free Report) is a stock many investors are watching right now. LZB is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 7.28 right now. For comparison, its industry sports an average P/E of 13.65. Over the past 52 weeks, LZB's Forward P/E has been as high as 10.83 and as low as 6.59, with a median of 8.47.
We should also highlight that LZB has a P/B ratio of 1.18. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 3.32. Over the past 12 months, LZB's P/B has been as high as 2.12 and as low as 1.13, with a median of 1.49.
Finally, our model also underscores that LZB has a P/CF ratio of 4.88. 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. LZB's P/CF compares to its industry's average P/CF of 9.86. Over the past year, LZB's P/CF has been as high as 10.21 and as low as 4.67, with a median of 7.07.
Investors could also keep in mind Sleep Number (SNBR - Free Report) , an Furniture stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Shares of Sleep Number are currently trading at a forward earnings multiple of 8.13 and a PEG ratio of 0.64 compared to its industry's P/E and PEG ratios of 13.65 and 0.54, respectively.
SNBR's Forward P/E has been as high as 12.62 and as low as 5.70, with a median of 9.36. During the same time period, its PEG ratio has been as high as 1.89, as low as 0.45, with a median of 0.73.
Furthermore, Sleep Number holds a P/B ratio of -1.62 and its industry's price-to-book ratio is 3.32. SNBR's P/B has been as high as -1.48, as low as -4.75, with a median of -2.35 over the past 12 months.
These are only a few of the key metrics included in LaZBoy and Sleep Number strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, LZB and SNBR look like an impressive value stock at the moment.