Is Flexsteel Industries (FLXS) 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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
Flexsteel Industries (FLXS) is a stock many investors are watching right now. FLXS is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 7.08. This compares to its industry's average Forward P/E of 16.09. Over the past year, FLXS's Forward P/E has been as high as 12.33 and as low as 6.78, with a median of 8.21.
We also note that FLXS holds a PEG ratio of 0.59. 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. FLXS's PEG compares to its industry's average PEG of 0.60. Over the past 52 weeks, FLXS's PEG has been as high as 1.03 and as low as 0.57, with a median of 0.68.
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. FLXS has a P/S ratio of 0.15. This compares to its industry's average P/S of 0.32.
If you're looking for another solid Furniture value stock, take a look at Virco Manufacturing (VIRC). VIRC is a # 2 (Buy) stock with a Value score of A.
Additionally, Virco Manufacturing has a P/B ratio of 1.32 while its industry's price-to-book ratio sits at 3.56. For VIRC, this valuation metric has been as high as 1.59, as low as 0.81, with a median of 1.24 over the past year.
These are just a handful of the figures considered in Flexsteel Industries and Virco Manufacturing'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 FLXS and VIRC is an impressive value stock right now.
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Flexsteel Industries, Inc. (FLXS) : Free Stock Analysis Report
Virco Manufacturing Corporation (VIRC) : Free Stock Analysis Report
