Is Bassett Furniture (BSET) Stock Undervalued Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
Bassett Furniture (BSET) is a stock many investors are watching right now. BSET is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 13.19 right now. For comparison, its industry sports an average P/E of 14.76. Over the last 12 months, BSET's Forward P/E has been as high as 1,281.02 and as low as -1,977.34, with a median of 16.68.
We also note that BSET holds 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 industry has an average PEG of 1.08 right now. Over the last 12 months, BSET's PEG has been as high as 80.06 and as low as -123.58, with a median of 1.04.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. 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 0.42. This compares to its industry's average P/S of 0.65.
Value investors will likely look at more than just these metrics, but the above data helps show that Bassett Furniture is likely undervalued currently. And when considering the strength of its earnings outlook, BSET sticks out at as one of the market's strongest value stocks.
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Bassett Furniture Industries, Incorporated (BSET) : Free Stock Analysis Report
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