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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.
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.
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 Carriage Services (CSV). CSV is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 14.43. This compares to its industry's average Forward P/E of 20.84. Over the last 12 months, CSV's Forward P/E has been as high as 14.56 and as low as 9.95, with a median of 11.43.
Investors will also notice that CSV has a PEG ratio of 0.96. 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. CSV's industry has an average PEG of 2.03 right now. Within the past year, CSV's PEG has been as high as 0.97 and as low as 0.66, with a median of 0.76.
Another notable valuation metric for CSV is its P/B ratio of 3.11. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 6.42. Over the past year, CSV's P/B has been as high as 3.12 and as low as 1.97, with a median of 2.31.
Finally, our model also underscores that CSV has a P/CF ratio of 10.52. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. CSV's P/CF compares to its industry's average P/CF of 13.32. Within the past 12 months, CSV's P/CF has been as high as 10.56 and as low as 6.31, with a median of 7.50.
These are just a handful of the figures considered in Carriage Services's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that CSV is an impressive value stock right now.