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Is La-Z-Boy (LZB) a Great Value Stock Right Now?

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·2 min read
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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.

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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 value investors might notice is La-Z-Boy (LZB). LZB is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.

We should also highlight that LZB has a P/B ratio of 1.70. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 4.09. LZB's P/B has been as high as 2.43 and as low as 1.05, with a median of 2.06, over the past year.

Finally, investors will want to recognize that LZB has a P/CF ratio of 11.49. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 12.71. Within the past 12 months, LZB's P/CF has been as high as 17.21 and as low as 7.18, with a median of 14.57.

These are just a handful of the figures considered in La-Z-Boy'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 LZB is an impressive value stock right now.


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