Should Value Investors Buy LaZBoy (LZB) Stock?
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...
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 LaZBoy (LZB). LZB is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 9.09, while its industry has an average P/E of 15.31. Over the last 12 months, LZB's Forward P/E has been as high as 18.03 and as low as 8.35, with a median of 12.52.
Investors should also recognize that LZB has a P/B ratio of 2.02. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 3.92. LZB's P/B has been as high as 2.73 and as low as 1.84, with a median of 2.20, over the past year.
Finally, investors should note that LZB has a P/CF ratio of 9.73. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 20.33. Over the past 52 weeks, LZB's P/CF has been as high as 16.27 and as low as 8.87, with a median of 12.35.
These figures are just a handful of the metrics value investors tend to look at, but they help show that LaZBoy is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, LZB feels like a great value stock at the moment.
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LaZBoy Incorporated (LZB): Free Stock Analysis Report
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