Advertisement
U.S. markets closed
  • S&P 500

    5,254.35
    +5.86 (+0.11%)
     
  • Dow 30

    39,807.40
    +47.29 (+0.12%)
     
  • Nasdaq

    16,379.46
    -20.06 (-0.12%)
     
  • Russell 2000

    2,124.55
    +10.20 (+0.48%)
     
  • Crude Oil

    83.11
    -0.06 (-0.07%)
     
  • Gold

    2,254.80
    +16.40 (+0.73%)
     
  • Silver

    25.10
    +0.18 (+0.74%)
     
  • EUR/USD

    1.0800
    +0.0007 (+0.06%)
     
  • 10-Yr Bond

    4.2060
    +0.0100 (+0.24%)
     
  • GBP/USD

    1.2642
    +0.0019 (+0.15%)
     
  • USD/JPY

    151.2400
    -0.1320 (-0.09%)
     
  • Bitcoin USD

    70,471.50
    -369.64 (-0.52%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • FTSE 100

    7,952.62
    +20.64 (+0.26%)
     
  • Nikkei 225

    40,369.44
    +201.37 (+0.50%)
     

Is Ethan Allen (ETH) a Great Value Stock Right Now?

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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.

One company to watch right now is Ethan Allen (ETH). ETH is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 9.57 right now. For comparison, its industry sports an average P/E of 16.48. Over the past 52 weeks, ETH's Forward P/E has been as high as 27.37 and as low as 9.57, with a median of 14.20.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. ETH has a P/S ratio of 1.06. This compares to its industry's average P/S of 1.16.

Finally, investors will want to recognize that ETH has a P/CF ratio of 13.09. 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. ETH's P/CF compares to its industry's average P/CF of 20.75. Over the past 52 weeks, ETH's P/CF has been as high as 24.16 and as low as 11.43, with a median of 16.96.

These are only a few of the key metrics included in Ethan Allen'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, ETH looks like an impressive value stock at the moment.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Ethan Allen Interiors Inc. (ETH) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.

Advertisement