Is Carriage Services (CSV) Stock Undervalued Right Now?

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.

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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 company to watch right now is Carriage Services (CSV). CSV is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 12.59, which compares to its industry's average of 18.33. Over the last 12 months, CSV's Forward P/E has been as high as 15.93 and as low as 11.06, with a median of 13.55.

Investors will also notice that CSV has a PEG ratio of 0.84. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CSV's PEG compares to its industry's average PEG of 1.64. CSV's PEG has been as high as 1.06 and as low as 0.74, with a median of 0.90, all within the past year.

Investors should also recognize that CSV has a P/B ratio of 2.93. The P/B is a method of comparing a stock's market value to 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 5.88. Over the past year, CSV's P/B has been as high as 3.24 and as low as 2.33, with a median of 2.97.

Finally, we should also recognize that CSV has a P/CF ratio of 8.97. 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. CSV's current P/CF looks attractive when compared to its industry's average P/CF of 11.31. CSV's P/CF has been as high as 11.38 and as low as 7.79, with a median of 9.50, all within the past year.

These are only a few of the key metrics included in Carriage Services's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, CSV looks like an impressive value stock at the moment.

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This article originally published on Zacks Investment Research (zacks.com).

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