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Are Investors Undervaluing Carriage Services (CSV) Right Now?

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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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One stock to keep an eye on is Carriage Services (CSV - Free Report) . CSV 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 14.05 right now. For comparison, its industry sports an average P/E of 19.58. Over the past year, CSV's Forward P/E has been as high as 15.93 and as low as 10, with a median of 12.26.

Investors should also note that CSV holds a PEG ratio of 0.94. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. CSV's industry currently sports an average PEG of 1.75. Over the past 52 weeks, CSV's PEG has been as high as 1.06 and as low as 0.67, with a median of 0.82.

We should also highlight that CSV has a P/B ratio of 3.05. 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. CSV's current P/B looks attractive when compared to its industry's average P/B of 5.46. Over the past 12 months, CSV's P/B has been as high as 3.24 and as low as 1.97, with a median of 2.49.

Finally, our model also underscores that CSV has a P/CF ratio of 10.31. 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. This stock's P/CF looks attractive against its industry's average P/CF of 12.82. CSV's P/CF has been as high as 10.96 and as low as 6.44, with a median of 8.56, all within the past year.

These are just a handful of the figures considered in Carriage Services's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that CSV is an impressive value stock right now.


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