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. Nevertheless, we are always paying attention to...
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.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 MasterCraft Boat Holdings, Inc. (MCFT). MCFT is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value.
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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. MCFT has a P/S ratio of 0.97. This compares to its industry's average P/S of 1.69.
Finally, investors will want to recognize that MCFT has a P/CF ratio of 7.36. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 22.94. Over the past year, MCFT's P/CF has been as high as 12.70 and as low as -103.09, with a median of 7.05.
Value investors will likely look at more than just these metrics, but the above data helps show that MasterCraft Boat Holdings, Inc. Is likely undervalued currently. And when considering the strength of its earnings outlook, MCFT sticks out at as one of the market's strongest value stocks.
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MASTERCRAFT BOAT HOLDINGS, INC. (MCFT): Free Stock Analysis Report
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