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Should Value Investors Buy Lifetime Brands (LCUT) Stock?

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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.

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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 Lifetime Brands (LCUT - Free Report) . LCUT is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. LCUT has a P/S ratio of 0.3. This compares to its industry's average P/S of 0.72.

Finally, investors should note that LCUT has a P/CF ratio of 13.12. 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. LCUT's P/CF compares to its industry's average P/CF of 33.82. Over the past 52 weeks, LCUT's P/CF has been as high as 52.72 and as low as 7.54, with a median of 14.34.

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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