Should Value Investors Buy MasterCraft Boat Holdings, Inc. (MCFT) Stock?

·3 min read

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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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.

MasterCraft Boat Holdings, Inc. (MCFT) is a stock many investors are watching right now. MCFT is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.

Another valuation metric that we should highlight is MCFT's P/B ratio of 5.36. Investors use the P/B ratio to look at a stock's market value versus 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 7.15. Over the past 12 months, MCFT's P/B has been as high as 8.89 and as low as 5.36, with a median of 7.09.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. MCFT has a P/S ratio of 1.15. This compares to its industry's average P/S of 2.

Finally, we should also recognize that MCFT has a P/CF ratio of 9.96. 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. MCFT's current P/CF looks attractive when compared to its industry's average P/CF of 38.98. Over the past 52 weeks, MCFT's P/CF has been as high as 12.70 and as low as -103.09, with a median of -31.94.

These are only a few of the key metrics included in MasterCraft Boat Holdings, Inc.'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, MCFT looks like an impressive value stock at the moment.


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