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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
Lumber Liquidators Holdings (LL) is a stock many investors are watching right now. LL is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
Investors will also notice that LL has a PEG ratio of 1.53. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. LL's PEG compares to its industry's average PEG of 1.59. Within the past year, LL's PEG has been as high as 1.55 and as low as -17.03, with a median of 0.63.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. LL has a P/S ratio of 0.37. This compares to its industry's average P/S of 0.41.
Finally, our model also underscores that LL has a P/CF ratio of 6.62. 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 14.42. Over the past year, LL's P/CF has been as high as 11.94 and as low as -8.08, with a median of 5.05.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Lumber Liquidators Holdings is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, LL feels like a great value stock at the moment.
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Lumber Liquidators Holdings, Inc (LL) : Free Stock Analysis Report
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