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Is Carriage Services (CSV) Stock Undervalued Right Now?

Zacks Equity Research
·2 min read

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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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.

One company to watch right now is Carriage Services (CSV). CSV is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 13.52. This compares to its industry's average Forward P/E of 15.56. Over the past year, CSV's Forward P/E has been as high as 18.96 and as low as 8.20, with a median of 11.90.

Investors should also note that CSV holds a PEG ratio of 0.90. 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. CSV's PEG compares to its industry's average PEG of 1.39. Within the past year, CSV's PEG has been as high as 1.26 and as low as 0.55, with a median of 0.79.

Another valuation metric that we should highlight is CSV's P/B ratio of 2.26. The P/B is a method of comparing a stock's market value to 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 3.04. CSV's P/B has been as high as 2.26 and as low as 1.11, with a median of 1.74, over the past year.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Carriage Services is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CSV feels like a great value stock at the moment.


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