Is Ethan Allen (ETD) Stock Undervalued Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to...
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
One stock to keep an eye on is Ethan Allen (ETD). ETD is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 9.07, which compares to its industry's average of 14.84. ETD's Forward P/E has been as high as 18.05 and as low as 8.60, with a median of 12.82, all within the past year.
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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. ETD has a P/S ratio of 0.88. This compares to its industry's average P/S of 1.16.
Finally, investors will want to recognize that ETD has a P/CF ratio of 8.20. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 22.03. ETD's P/CF has been as high as 24.16 and as low as 7.73, with a median of 16.37, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Ethan Allen is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ETD feels like a great value stock at the moment.
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Ethan Allen Interiors Inc. (ETD): Free Stock Analysis Report
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