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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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 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 LaZBoy (LZB - Free Report) . LZB is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 11.81, while its industry has an average P/E of 13.02. Over the past 52 weeks, LZB's Forward P/E has been as high as 14.43 and as low as 9.51, with a median of 11.76.
We should also highlight that LZB has a P/B ratio of 1.58. Investors use the P/B ratio to look at a stock's market value versus 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 3.38. Over the past 12 months, LZB's P/B has been as high as 1.71 and as low as 1.22, with a median of 1.49.
Finally, we should also recognize that LZB has a P/CF ratio of 6.52. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. LZB's P/CF compares to its industry's average P/CF of 13.56. Within the past 12 months, LZB's P/CF has been as high as 8.02 and as low as 5.68, with a median of 7.11.
Virco Manufacturing (VIRC - Free Report) may be another strong Furniture stock to add to your shortlist. VIRC is a # 1 (Strong Buy) stock with a Value grade of A.
Furthermore, Virco Manufacturing holds a P/B ratio of 2.40 and its industry's price-to-book ratio is 3.38. VIRC's P/B has been as high as 3.16, as low as 0.86, with a median of 1.74 over the past 12 months.
These figures are just a handful of the metrics value investors tend to look at, but they help show that LaZBoy and Virco Manufacturing are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, LZB and VIRC feels like a great value stock at the moment.
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Should Value Investors Buy LaZBoy (LZB) Stock?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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 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 LaZBoy (LZB - Free Report) . LZB is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 11.81, while its industry has an average P/E of 13.02. Over the past 52 weeks, LZB's Forward P/E has been as high as 14.43 and as low as 9.51, with a median of 11.76.
We should also highlight that LZB has a P/B ratio of 1.58. Investors use the P/B ratio to look at a stock's market value versus 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 3.38. Over the past 12 months, LZB's P/B has been as high as 1.71 and as low as 1.22, with a median of 1.49.
Finally, we should also recognize that LZB has a P/CF ratio of 6.52. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. LZB's P/CF compares to its industry's average P/CF of 13.56. Within the past 12 months, LZB's P/CF has been as high as 8.02 and as low as 5.68, with a median of 7.11.
Virco Manufacturing (VIRC - Free Report) may be another strong Furniture stock to add to your shortlist. VIRC is a # 1 (Strong Buy) stock with a Value grade of A.
Furthermore, Virco Manufacturing holds a P/B ratio of 2.40 and its industry's price-to-book ratio is 3.38. VIRC's P/B has been as high as 3.16, as low as 0.86, with a median of 1.74 over the past 12 months.
These figures are just a handful of the metrics value investors tend to look at, but they help show that LaZBoy and Virco Manufacturing are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, LZB and VIRC feels like a great value stock at the moment.