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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 to watch right now is Lifetime Brands (LCUT). LCUT is currently sporting a Zacks Rank #1 (Strong Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 12.21, which compares to its industry's average of 14.43. Over the last 12 months, LCUT's Forward P/E has been as high as 16.61 and as low as 4.25, with a median of 7.87.
Investors will also notice that LCUT has a PEG ratio of 0.87. 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. LCUT's PEG compares to its industry's average PEG of 1.80. Over the past 52 weeks, LCUT's PEG has been as high as 1.19 and as low as 0.30, with a median of 0.56.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. LCUT has a P/S ratio of 0.31. This compares to its industry's average P/S of 0.72.
These are just a handful of the figures considered in Lifetime Brands'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 LCUT is an impressive value stock right now.
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Lifetime Brands, Inc. (LCUT): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).