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Are These Construction Stocks Undervalued Right Now?
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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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 Bellway (BLWYY - Free Report) . BLWYY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 8.58. This compares to its industry's average Forward P/E of 14.10. Over the past year, BLWYY's Forward P/E has been as high as 10.50 and as low as 8.40, with a median of 8.77.
Another notable valuation metric for BLWYY is its P/B ratio of 1.27. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. BLWYY's current P/B looks attractive when compared to its industry's average P/B of 3.29. Over the past year, BLWYY's P/B has been as high as 1.47 and as low as 1.18, with a median of 1.27.
Another great Building Products - Miscellaneous stock you could consider is Quanex Building Products (NX - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Quanex Building Products sports a P/B ratio of 1.74 as well; this compares to its industry's price-to-book ratio of 3.29. In the past 52 weeks, NX's P/B has been as high as 2.52, as low as 1.69, with a median of 1.92.
Value investors will likely look at more than just these metrics, but the above data helps show that Bellway and Quanex Building Products are likely undervalued currently. And when considering the strength of its earnings outlook, BLWYY and NX sticks out as one of the market's strongest value stocks.
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Are These Construction Stocks Undervalued Right Now?
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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 Bellway (BLWYY - Free Report) . BLWYY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 8.58. This compares to its industry's average Forward P/E of 14.10. Over the past year, BLWYY's Forward P/E has been as high as 10.50 and as low as 8.40, with a median of 8.77.
Another notable valuation metric for BLWYY is its P/B ratio of 1.27. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. BLWYY's current P/B looks attractive when compared to its industry's average P/B of 3.29. Over the past year, BLWYY's P/B has been as high as 1.47 and as low as 1.18, with a median of 1.27.
Another great Building Products - Miscellaneous stock you could consider is Quanex Building Products (NX - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Quanex Building Products sports a P/B ratio of 1.74 as well; this compares to its industry's price-to-book ratio of 3.29. In the past 52 weeks, NX's P/B has been as high as 2.52, as low as 1.69, with a median of 1.92.
Value investors will likely look at more than just these metrics, but the above data helps show that Bellway and Quanex Building Products are likely undervalued currently. And when considering the strength of its earnings outlook, BLWYY and NX sticks out as one of the market's strongest value stocks.