Is MasterCraft Boat Holdings, Inc. (MCFT) Stock Undervalued 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.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
MasterCraft Boat Holdings, Inc. (MCFT) is a stock many investors are watching right now. MCFT is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
We should also highlight that MCFT has a P/B ratio of 3.85. 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. MCFT's current P/B looks attractive when compared to its industry's average P/B of 4.87. MCFT's P/B has been as high as 8.97 and as low as 3.20, with a median of 5.32, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. MCFT has a P/S ratio of 0.64. This compares to its industry's average P/S of 1.19.
Finally, investors will want to recognize that MCFT has a P/CF ratio of 10.14. 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 27.30. Over the past 52 weeks, MCFT's P/CF has been as high as 13.20 and as low as 6.72, with a median of 8.83.
These are only a few of the key metrics included in MasterCraft Boat Holdings, Inc.'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, MCFT looks like an impressive value stock at the moment.
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