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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, 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 Funko, Inc. (FNKO). FNKO is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
FNKO is also sporting a PEG ratio of 0.95. 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. FNKO's industry currently sports an average PEG of 1.43. Over the past 52 weeks, FNKO's PEG has been as high as 1.27 and as low as 0.23, with a median of 0.61.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. FNKO has a P/S ratio of 0.46. This compares to its industry's average P/S of 0.76.
Finally, we should also recognize that FNKO has a P/CF ratio of 5.78. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. FNKO's P/CF compares to its industry's average P/CF of 16.85. Within the past 12 months, FNKO's P/CF has been as high as 10.67 and as low as 2.10, with a median of 5.45.
These are only a few of the key metrics included in Funko, Inc.'s strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, FNKO looks like an impressive value stock at the moment.
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Funko, Inc. (FNKO) : Free Stock Analysis Report
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