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

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Zacks Equity Research
·2 min read
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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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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.

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 La-Z-Boy (LZB). LZB is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.

Investors should also recognize that LZB has a P/B ratio of 1.75. 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 4.09. Over the past year, LZB's P/B has been as high as 2.43 and as low as 1.05, with a median of 2.07.

Finally, investors will want to recognize that LZB has a P/CF ratio of 12.02. 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. LZB's current P/CF looks attractive when compared to its industry's average P/CF of 12.71. Over the past 52 weeks, LZB's P/CF has been as high as 17.21 and as low as 7.18, with a median of 14.62.

These are only a few of the key metrics included in La-Z-Boy'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, LZB looks like an impressive value stock at the moment.


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