Is Funko, Inc. (FNKO) a Great Value Stock Right Now?
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.
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 Funko, Inc. (FNKO). FNKO is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 12.02. This compares to its industry's average Forward P/E of 15.73. Over the past year, FNKO's Forward P/E has been as high as 20.43 and as low as 3.58, with a median of 11.71.
Investors should also note that FNKO holds a PEG ratio of 0.80. 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. FNKO's PEG compares to its industry's average PEG of 1.52. FNKO's PEG has been as high as 1.24 and as low as 0.23, with a median of 0.62, all within the past year.
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 0.41. This compares to its industry's average P/S of 0.73.
Value investors will likely look at more than just these metrics, but the above data helps show that Funko, Inc. Is likely undervalued currently. And when considering the strength of its earnings outlook, FNKO sticks out at as one of the market's strongest value stocks.
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