Are These Consumer Discretionary Stocks Undervalued Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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.
MasterCraft Boat (MCFT) is a stock many investors are watching right now. MCFT is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
We should also highlight that MCFT has a P/B ratio of 3.74. 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 stock's P/B looks attractive against its industry's average P/B of 5.53. Over the past year, MCFT's P/B has been as high as 8.32 and as low as 3.54, with a median of 4.53.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. MCFT has a P/S ratio of 0.78. This compares to its industry's average P/S of 1.32.
Investors could also keep in mind OneWater Marine (ONEW), an Leisure and Recreation Products stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
OneWater Marine also has a P/B ratio of 2.32 compared to its industry's price-to-book ratio of 5.53. Over the past year, its P/B ratio has been as high as 3.84, as low as 2.32, with a median of 2.87.
These are just a handful of the figures considered in MasterCraft Boat and OneWater Marine'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 MCFT and ONEW is an impressive value stock right now.
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MASTERCRAFT BOAT HOLDINGS, INC. (MCFT) : Free Stock Analysis Report
OneWater Marine Inc. (ONEW) : Free Stock Analysis Report
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