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Are Investors Undervaluing UFP Industries (UFPI) Right Now?
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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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
UFP Industries (UFPI - Free Report) is a stock many investors are watching right now. UFPI is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 10.14 right now. For comparison, its industry sports an average P/E of 20.58. UFPI's Forward P/E has been as high as 12.28 and as low as 7, with a median of 8.94, all within the past year.
Another notable valuation metric for UFPI is its P/B ratio of 2.04. The P/B ratio is used to compare a stock's market value with 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 2.85. Over the past 12 months, UFPI's P/B has been as high as 2.72 and as low as 1.68, with a median of 2.11.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. UFPI has a P/S ratio of 0.54. This compares to its industry's average P/S of 1.03.
Finally, investors will want to recognize that UFPI has a P/CF ratio of 6.37. 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. UFPI's current P/CF looks attractive when compared to its industry's average P/CF of 10.77. Over the past year, UFPI's P/CF has been as high as 8.74 and as low as 5.24, with a median of 6.55.
These are just a handful of the figures considered in UFP Industries'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 UFPI is an impressive value stock right now.
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Are Investors Undervaluing UFP Industries (UFPI) Right Now?
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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
UFP Industries (UFPI - Free Report) is a stock many investors are watching right now. UFPI is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 10.14 right now. For comparison, its industry sports an average P/E of 20.58. UFPI's Forward P/E has been as high as 12.28 and as low as 7, with a median of 8.94, all within the past year.
Another notable valuation metric for UFPI is its P/B ratio of 2.04. The P/B ratio is used to compare a stock's market value with 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 2.85. Over the past 12 months, UFPI's P/B has been as high as 2.72 and as low as 1.68, with a median of 2.11.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. UFPI has a P/S ratio of 0.54. This compares to its industry's average P/S of 1.03.
Finally, investors will want to recognize that UFPI has a P/CF ratio of 6.37. 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. UFPI's current P/CF looks attractive when compared to its industry's average P/CF of 10.77. Over the past year, UFPI's P/CF has been as high as 8.74 and as low as 5.24, with a median of 6.55.
These are just a handful of the figures considered in UFP Industries'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 UFPI is an impressive value stock right now.