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Should Value Investors Buy MasterCraft Boat Holdings, Inc. (MCFT) Stock?

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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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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.

MasterCraft Boat Holdings, Inc. (MCFT) is a stock many investors are watching right now. MCFT 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 7.17. This compares to its industry's average Forward P/E of 12.83. Over the past year, MCFT's Forward P/E has been as high as 15.89 and as low as 7.17, with a median of 12.26.

We also note that MCFT holds a PEG ratio of 0.48. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. MCFT's industry currently sports an average PEG of 0.63. Within the past year, MCFT's PEG has been as high as 1.06 and as low as 0.48, with a median of 0.82.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. MCFT has a P/S ratio of 1.08. This compares to its industry's average P/S of 1.25.

Finally, investors will want to recognize that MCFT has a P/CF ratio of 8.24. 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. MCFT's current P/CF looks attractive when compared to its industry's average P/CF of 13.80. Over the past 52 weeks, MCFT's P/CF has been as high as 18.85 and as low as 8.24, with a median of 14.25.

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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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