U.S. Markets closed

Are Investors Undervaluing Lazard Ltd (LAZ) Right Now?

Zacks Equity Research
American River (AMRB) delivered earnings and revenue surprises of -13.04% and 0.61%, respectively, for the quarter ended September 2018. Do the numbers hold clues to what lies ahead for the stock?

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.

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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company value investors might notice is Lazard Ltd (LAZ). LAZ is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 11.27. This compares to its industry's average Forward P/E of 12.32. Over the last 12 months, LAZ's Forward P/E has been as high as 15.55 and as low as 10.77, with a median of 12.65.

Investors should also note that LAZ holds a PEG ratio of 1.07. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. LAZ's industry currently sports an average PEG of 1.21. Over the past 52 weeks, LAZ's PEG has been as high as 1.90 and as low as 1.07, with a median of 1.38.

Finally, investors will want to recognize that LAZ has a P/CF ratio of 9.34. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 17.38. Over the past year, LAZ's P/CF has been as high as 10.89 and as low as 6.03, with a median of 9.31.

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


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Lazard Ltd (LAZ) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.

  • Aurora Cannabis stock leads sector higher after news it will start trading on NYSE next week
    News
    MarketWatch

    Aurora Cannabis stock leads sector higher after news it will start trading on NYSE next week

    Canadian marijuana company Aurora Cannabis Inc.’s shares rose about 4% Thursday after it said shares have been approved for trading on the New York Stock Exchange starting October 23. The stock (CA:ACB)(CA:ACB) which is currently trading on the over-the-counter market, will trade under the ticker symbol “ACB”. The shares are also traded on the Toronto Stock Exchange.

  • Provocateur Stormy Daniels Takes an Unexpected Turn in the National Spotlight
    Politics
    Time

    Provocateur Stormy Daniels Takes an Unexpected Turn in the National Spotlight

    To understand what it means to be famous like Stormy Daniels, for the reasons she is famous, spend time with her in a public space. On Oct. 15, a California judge threw out the defamation case she filed against Donald Trump. Over the past year, Daniels, 39, has become the Zelig of White House scandals.

  • The ‘smart money’ says it’s time to buy the Chinese internet giants and the U.S. FAANGs
    News
    MarketWatch

    The ‘smart money’ says it’s time to buy the Chinese internet giants and the U.S. FAANGs

    When the media and investors turn negative on stocks but the “smart money” is bullish, it’s a good time to think about buying. After all, exactly what is the smart money, and how do you know? Lately, several fund managers who pass this test have been pounding the table on Chinese internet names.

  • What happens if you win Mega Millions' $970M jackpot?
    News
    Associated Press

    What happens if you win Mega Millions' $970M jackpot?

    Despite the terrible odds — one in 302.5 million for those keeping score at home — someone will eventually match all six numbers and win the Mega Millions jackpot, which now stands at $970 million. Here are some answers for someone holding that prized lottery ticket for what would be the second-largest lottery jackpot in U.S. history. Lottery officials recommend winners take a deep breath, put their winning ticket in a safe spot and consult with a reputable financial planner before popping over to the lottery headquarters.

  • Here's everyone who has dropped out of Saudi Arabia's 'Davos of the Middle East'
    Finance
    Yahoo Finance

    Here's everyone who has dropped out of Saudi Arabia's 'Davos of the Middle East'

    U.S. Treasury Secretary Steven Mnuchin tweeted Thursday that he will not be attending the Future Investment Initiative in Saudi Arabia next week. The news comes after prominent members of the world’s business community have been dropping out of Saudi

  • Finding a Cure for Kinder Morgan’s Frustration
    Business
    Bloomberg

    Finding a Cure for Kinder Morgan’s Frustration

    Rising profits – Ebitda was up 6 percent, year over year – and that Canadian pipeline sale have helped address Kinder Morgan’s biggest problem, its crushing debt. Thankfully, it provided a strong signal on Wednesday evening that it would.

  • Ford Motor Company Earnings: What to Watch For
    Business
    Motley Fool

    Ford Motor Company Earnings: What to Watch For

    Ford Motor Company (NYSE: F) will report its third-quarter earnings results after the markets close on Oct. 24. Wall Street analysts polled by Thomson Reuters expect Ford to report earnings of $0.30 per share, on average, down from $0.43 in the third quarter of 2017. Ford's F-Series pickups continue to sell well and generate good profits, thanks to high-margin versions like this F-150 Limited.

  • Cramer's lightning round: For growth and yield, go with V...
    KHC
    CNBC Videos

    Cramer's lightning round: For growth and yield, go with V...

    Jim Cramer speeds through his take on callers' favorite stocks, including his favorite pick for "decent growth with good yield."

  • Business
    CNBC

    Goldman Sachs sees a correction coming for chipmakers but still likes Nvidia

    "We foresee a cyclical correction approaching and recommend investors to stay selective in Semis," Goldman Sachs said in a note Thursday. Nvidia is Goldman's top choice in the industry. Goldman Sachs warned clients about a downturn coming for the semiconductor sector, but still recommends some chip stocks.

  • Android phones are about to completely change as Google plans to charge for apps
    Technology
    The Independent

    Android phones are about to completely change as Google plans to charge for apps

    The world's most popular mobile operating system may soon look very different after Google announced that smartphone manufacturers will no longer have free access to popular apps on Android. The licensing fee charge for the Play Store and other Google apps follows a $5 billion fine handed to the technology giant by the European Commission for antitrust violations earlier this year. Until now, Android phones and tablets have all come pre-installed with Google's search engine and Chrome browser, a move that European lawmakers deemed illegal.

  • Musk’s Big China Play Comes as World’s Top Car Market Slows
    Business
    Bloomberg

    Musk’s Big China Play Comes as World’s Top Car Market Slows

    Acquiring the parcel keeps Tesla on track to spend several billion dollars on its first overseas plant in the world’s largest electric-vehicle market. President Donald Trump’s trade war with China has led to higher Chinese tariffs on American imports, stoking concern about an economic slowdown. Tesla fell 1.7 percent to $271.78 in New York trading Wednesday.

  • How the Recent Sell-Off Impacted AT&T’s Technical Indicators
    Finance
    Market Realist

    How the Recent Sell-Off Impacted AT&T’s Technical Indicators

    What Investors Should Know about AT&T’s Growth Prospects (Continued from Prior Part) AT&T’s moving averages Now let’s look at AT&T’s (T) technical indicators and compare them to its peers in the telecom space. The sell-off of AT&T stock in October saw

  • Why American Airlines Group Stock Jumped 6% -- Then Gave Most of It Back
    Business
    Motley Fool

    Why American Airlines Group Stock Jumped 6% -- Then Gave Most of It Back

    Shares of American Airlines Group (NASDAQ: AAL) popped 6.4% in early trading Wednesday before retracting to close the day up less than 1% -- just 0.9%, to be precise. An upgrade assigned to the stock by Deutsche Bank appears to be the primary reason for the move. A Deutsche Bank analyst upgraded American Airlines stock from "hold" to "buy" on Wednesday, as we're told by our friends at StreetInsider.com.

  • Uber driver charged with kidnapping New York woman
    News
    Associated Press

    Uber driver charged with kidnapping New York woman

    An Uber driver in New York City kidnapped a woman who fell asleep in his vehicle, groped her in the back seat and then left her on the side of a highway in Connecticut, federal authorities said Tuesday. Harbir Parmar, 24, of Queens, was charged in U.S. District Court with kidnapping. "The presumption of innocence remains with my client," Parmar's lawyer, Susanne Brody, told The New York Times at the courthouse after the hearing.

  • Business
    Reuters

    TSMC sees modest fourth-quarter revenue growth, shrugs off trade war impact

    By Jess Macy Yu and Yimou Lee TAIPEI (Reuters) - Taiwan Semiconductor Manufacturing Co (TSMC) offered a modest fourth-quarter revenue growth outlook, predicting weaker sales of high-performance computers for cryptocurrency mining

  • Robinhood fires back after criticism
    SPY
    Yahoo Finance Video

    Robinhood fires back after criticism

    When Robinhood launched in 2015, it was touted as an app that allows commission-free trading for everything from stocks to ETFs to cryptocurrencies. But a report from Bloomberg says Robinhood makes more than 40 percent of its revenue from selling its data to high-frequency trading firms. Yahoo Finance's Seana Smith, Dan Roberts and Adam Shapiro talk with Robinhood co-founder Vlad Tenev.

  • Ford's giving a few more people a chance to buy its $500K GT supercar
    Finance
    American City Business Journals

    Ford's giving a few more people a chance to buy its $500K GT supercar

    Ford Motor Co. is planning to make a few more of its ultra-expensive GT supercars. Citing "unprecedented" demand, the automaker (NYSE: F) on Thursday said it's increasing the production of the Ford GT from an initial run of 1,000 cars to 1,350 cars. The car doesn't come without its problems: Last week, Ford said it's recalling about 200 of the cars it's made so far because there's a risk they might catch on fire.

  • 7 Stocks Warren Buffett Can’t Stop Buying
    Finance
    InvestorPlace

    7 Stocks Warren Buffett Can’t Stop Buying

    Sometimes identifying the best stocks to buy can be difficult, but you could do a lot worse than checking out the stocks selected by one of the world’s savviest hedge fund managers — Warren Buffett. Buffett’s stock picks are a popular source for investors, and for good reason. The billionaire Buffett is many things: He’s among the world’s most successful fund managers, a legendary philanthropist and owns more than 60 companies.

  • Jamal Khashoggi's brutal death brings to question an era of Bay Area tech investment
    Finance
    American City Business Journals

    Jamal Khashoggi's brutal death brings to question an era of Bay Area tech investment

    New details have emerged about the killing of journalist Jamal Khashoggi by Saudi agents — involving his beheading and dismemberment upon entering the Saudi consulate in Istanbul, Turkey — thanks to audio files described by Turkish officials. As evidence mounts of the Washington Post columnist’s gruesome death tied to Saudi Arabia, Bay Area tech companies, which have gobbled up billions in funding from the kingdom in recent years, could see that money river dry up as Saudi investment becomes increasingly toxic. President Donald Trump has criticized those rushing to condemn the nation, telling the Associated Press: "You know, you’re guilty until proven innocent." Yet even still, Japanese investor Softbank isn’t stomaching the brutal killing tied to its major investment fund so easily.

  • Kinder Morgan Beats Q3 Earnings Estimates, Improves Leverage
    Finance
    Market Realist

    Kinder Morgan Beats Q3 Earnings Estimates, Improves Leverage

    Kinder Morgan Beats Q3 Earnings Estimates, Improves Leverage Kinder Morgan’s third-quarter results Kinder Morgan (KMI) announced its third-quarter results on October 17 after the markets closed. The company announced an adjusted EPS of $0.21—up ~40%

  • Finance
    CNBC

    China's stock market is getting pummeled and history shows that is bad news for US markets

    U.S. stocks are lower about 70 percent of the time in periods when there are big drops of 10 percent or more in Shanghai stocks, according to analytics firm Kensho. The main U.S. indexes lose about 5 percent when Shanghai stocks fall 10 percent or more in a 30-day period. Big blue chips, like Goldman and Caterpillar are among the losers, but copper and oil also fall hard when Shanghai sees a big decline.

  • The Latest: Fox Business Network pulls out of Saudi meeting
    World
    Associated Press

    The Latest: Fox Business Network pulls out of Saudi meeting

    Fox Business Network is pulling out of a business conference in Saudi Arabia following an international outcry over the disappearance of Saudi journalist Jamal Khashoggi. "Fox Business Network has canceled its sponsorship and participation in the Future Investment Initiative conference in Saudi Arabia," the network said in a written statement.

  • Is Tilray a Better Marijuana Stock to Buy Than Aurora Cannabis?
    World
    Motley Fool

    Is Tilray a Better Marijuana Stock to Buy Than Aurora Cannabis?

    Marijuana users are cheering the legalization of marijuana for recreational use in Canada, but it's not just pot advocates who are excited. Investors are also upbeat because the recreational market for marijuana represents a massive opportunity for sales growth for leading Canadian cannabis companies, including Tilray Inc. (NASDAQ: TLRY) and Aurora Cannabis (NASDAQOTH: ACBFF). Medical marijuana has been legal in Canada for years, and while medical marijuana sales total in the hundreds of millions of dollars annually, the potential market opportunity associated with recreational use is significantly bigger.

  • General Mills (GIS) Down 0.5% Since Last Earnings Report: Can It Rebound?
    Business
    Zacks

    General Mills (GIS) Down 0.5% Since Last Earnings Report: Can It Rebound?

    It has been about a month since the last earnings report for General Mills (GIS). Will the recent negative trend continue leading up to its next earnings release, or is General Mills due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

  • The same question that can chart a path to early retirement is the one Warren Buffett used to build Berkshire Hathaway into a powerhouse
    Business
    Business Insider

    The same question that can chart a path to early retirement is the one Warren Buffett used to build Berkshire Hathaway into a powerhouse

    Inversion is a mental model that involves flipping your outlook to prevent the opposite of what you want to happen from happening. Warren Buffett and his business partner Charlie Munger employed inversion as a business strategy to build Berkshire Hathaway into a powerhouse. In a recent podcast with Brandon of the Mad Fientist, who retired early at 34, productivity expert James Clear said the same strategy Buffett used can help set someone on the path for early retirement.