Back to top

Image: Bigstock

Is Lifetime Brands (LCUT) Stock 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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One stock to keep an eye on is Lifetime Brands (LCUT - Free Report) . LCUT is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 6.91. This compares to its industry's average Forward P/E of 10.73. Over the past 52 weeks, LCUT's Forward P/E has been as high as 13.52 and as low as 5.19, with a median of 9.01.

Investors will also notice that LCUT has a PEG ratio of 0.49. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. LCUT's industry has an average PEG of 0.59 right now. Over the last 12 months, LCUT's PEG has been as high as 0.97 and as low as 0.37, with a median of 0.64.

Finally, investors should note that LCUT has a P/CF ratio of 30. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 39.70. Within the past 12 months, LCUT's P/CF has been as high as 42.28 and as low as 7.54, with a median of 14.12.

Value investors will likely look at more than just these metrics, but the above data helps show that Lifetime Brands is likely undervalued currently. And when considering the strength of its earnings outlook, LCUT sticks out at as one of the market's strongest value stocks.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Lifetime Brands, Inc. (LCUT) - free report >>

Published in