Is MasterCraft Boat Holdings, Inc. (MCFT) a Great Value Stock 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. Neverthe...
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is MasterCraft Boat Holdings, Inc. (MCFT). MCFT is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
Another notable valuation metric for MCFT is its P/B ratio of 4.46. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 6.40. Over the past 12 months, MCFT's P/B has been as high as 8.84 and as low as 4.20, with a median of 6.37.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. MCFT has a P/S ratio of 0.94. This compares to its industry's average P/S of 1.67.
These figures are just a handful of the metrics value investors tend to look at, but they help show that MasterCraft Boat Holdings, Inc. Is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, MCFT feels like a great value stock at the moment.
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