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Are Investors Undervaluing Ethan Allen (ETH) Right Now?
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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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
Ethan Allen (ETH) is a stock many investors are watching right now. ETH is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 12.83, which compares to its industry's average of 16.34. Over the last 12 months, ETH's Forward P/E has been as high as 18.61 and as low as 10.94, with a median of 13.
ETH is also sporting a PEG ratio of 0.86. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ETH's industry currently sports an average PEG of 1.02. Over the past 52 weeks, ETH's PEG has been as high as 1.54 and as low as 0.81, with a median of 1.11.
Another notable valuation metric for ETH is its P/B ratio of 1.56. 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. ETH's current P/B looks attractive when compared to its industry's average P/B of 3.83. ETH's P/B has been as high as 1.75 and as low as 1.19, with a median of 1.42, over the past year.
Finally, investors will want to recognize that ETH has a P/CF ratio of 9.75. 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. This stock's P/CF looks attractive against its industry's average P/CF of 11.14. ETH's P/CF has been as high as 12.32 and as low as 8.18, with a median of 9.65, all within the past year.
These are just a handful of the figures considered in Ethan Allen'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 ETH is an impressive value stock right now.
Image: Bigstock
Are Investors Undervaluing Ethan Allen (ETH) Right Now?
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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
Ethan Allen (ETH) is a stock many investors are watching right now. ETH is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 12.83, which compares to its industry's average of 16.34. Over the last 12 months, ETH's Forward P/E has been as high as 18.61 and as low as 10.94, with a median of 13.
ETH is also sporting a PEG ratio of 0.86. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ETH's industry currently sports an average PEG of 1.02. Over the past 52 weeks, ETH's PEG has been as high as 1.54 and as low as 0.81, with a median of 1.11.
Another notable valuation metric for ETH is its P/B ratio of 1.56. 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. ETH's current P/B looks attractive when compared to its industry's average P/B of 3.83. ETH's P/B has been as high as 1.75 and as low as 1.19, with a median of 1.42, over the past year.
Finally, investors will want to recognize that ETH has a P/CF ratio of 9.75. 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. This stock's P/CF looks attractive against its industry's average P/CF of 11.14. ETH's P/CF has been as high as 12.32 and as low as 8.18, with a median of 9.65, all within the past year.
These are just a handful of the figures considered in Ethan Allen'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 ETH is an impressive value stock right now.