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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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 value investors might notice is Bassett Furniture (BSET). BSET is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 10.71, while its industry has an average P/E of 15.31. Over the last 12 months, BSET's Forward P/E has been as high as 19.73 and as low as -36.09, with a median of 14.70.
Another notable valuation metric for BSET is its P/B ratio of 1.42. Investors use the P/B ratio to look at a stock's market value versus 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 3.78. Over the past 12 months, BSET's P/B has been as high as 2.26 and as low as 0.51, with a median of 1.33.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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. BSET has a P/S ratio of 0.51. This compares to its industry's average P/S of 0.72.
Finally, investors will want to recognize that BSET has a P/CF ratio of 7.25. 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 19.48. Over the past year, 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 just a handful of the figures considered in Bassett Furniture's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that BSET is an impressive value stock right now.
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Bassett Furniture Industries, Incorporated (BSET) : Free Stock Analysis Report
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