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.
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.
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.
Acushnet (GOLF – Free Report) is a stock many investors are watching right now. GOLF is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 20.70. This compares to its industry’s average Forward P/E of 26.01. Over the past year, GOLF’s Forward P/E has been as high as 23.49 and as low as 18.05, with a median of 20.
Another valuation metric that we should highlight is GOLF’s P/B ratio of 4.87. The P/B ratio is used to compare a stock’s market value with its book value, which is defined as total assets minus total liabilities. GOLF’s current P/B looks attractive when compared to its industry’s average P/B of 9.03. Within the past 52 weeks, GOLF’s P/B has been as high as 5.20 and as low as 4.14, with a median of 4.57.
Finally, we should also recognize that GOLF has a P/CF ratio of 18.52. 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 26.23. Over the past 52 weeks, GOLF’s P/CF has been as high as 19.49 and as low as 15.51, with a median of 16.97.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Acushnet is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, GOLF feels like a great value stock at the moment.
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