Yahoo Finance Are Investors Undervaluing Steelcase (SCS) Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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.
One company to watch right now is Steelcase (SCS). SCS is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value.
Another valuation metric that we should highlight is SCS's P/B ratio of 1.77. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.36. Within the past 52 weeks, SCS's P/B has been as high as 1.84 and as low as 0.99, with a median of 1.61.
Finally, investors should note that SCS has a P/CF ratio of 9.37. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 10.69. Over the past 52 weeks, SCS's P/CF has been as high as 10.46 and as low as 6.17, with a median of 9.22.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Steelcase is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SCS feels like a great value stock at the moment.
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Steelcase Inc. (SCS) : Free Stock Analysis Report
