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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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 company to watch right now is Bassett Furniture (BSET). BSET is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 13.15. This compares to its industry's average Forward P/E of 16.23. Over the past 52 weeks, BSET's Forward P/E has been as high as 61 and as low as -36.09, with a median of 14.83.
Investors will also notice that BSET has a PEG ratio of 0.82. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. BSET's PEG compares to its industry's average PEG of 0.87. BSET's PEG has been as high as 3.81 and as low as -2.26, with a median of 0.93, all within the past year.
Another valuation metric that we should highlight is BSET's P/B ratio of 1.54. 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. Over the past 12 months, BSET's P/B has been as high as 2.26 and as low as 0.45, with a median of 1.27.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. BSET has a P/S ratio of 0.54. This compares to its industry's average P/S of 0.77.
Finally, our model also underscores that BSET has a P/CF ratio of 7.88. 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. BSET's P/CF compares to its industry's average P/CF of 20.22. Within the past 12 months, BSET's P/CF has been as high as 47.89 and as low as -37.92, with a median of 9.60.
These are only a few of the key metrics included in Bassett Furniture's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, BSET looks like an impressive value stock at the moment.
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Bassett Furniture Industries, Incorporated (BSET) : Free Stock Analysis Report
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