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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 to watch right now is Carriage Services (CSV). CSV is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 12.59. This compares to its industry's average Forward P/E of 18.74. CSV's Forward P/E has been as high as 15.93 and as low as 11.06, with a median of 13.55, all within the past year.
CSV is also sporting a PEG ratio of 0.84. 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. CSV's PEG compares to its industry's average PEG of 1.67. Over the past 52 weeks, CSV's PEG has been as high as 1.06 and as low as 0.74, with a median of 0.90.
Another notable valuation metric for CSV is its P/B ratio of 2.93. The P/B ratio pits a stock's market value against 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 5.32. Over the past 12 months, CSV's P/B has been as high as 3.24 and as low as 2.33, with a median of 2.97.
Finally, investors should note that CSV has a P/CF ratio of 8.97. 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. This stock's P/CF looks attractive against its industry's average P/CF of 11.75. Within the past 12 months, CSV's P/CF has been as high as 11.38 and as low as 7.79, with a median of 9.50.
These are only a few of the key metrics included in Carriage Services'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, CSV looks like an impressive value stock at the moment.
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Carriage Services, Inc. (CSV): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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