Many investors like to look for value in stocks, but this can be very tough to define. There is great debate regarding which metrics are the best to focus on in this regard, and which are not really quality indicators of future performance. Fortunately, with our new style score system we have identified the key statistics to pay close attention to and thus which stocks might be the best for value investors in the near term.
This method discovered several great candidates for value-oriented investors, but today let’s focus on CalAtlantic Group, Inc. as this stock is looking especially impressive right now. And while there are numerous reasons why this is the case, we have highlighted three of the most vital reasons for CAA’s status as a solid value stock below:
Forward PE for CalAtlantic
Easily one of the most popular readings for value investors, the forward PE ratio shows us the current price of a stock divided by the full year earnings. Generally speaking, value investors like to see this ratio below 20, though it can vary by industry.
Right now, CAA has a forward PE of just 10.69, which means that investors are paying $10.69 for each dollar in expected CalAtlantic earnings this year. Compared to the industry at large this is pretty favorable as the overall space has an average PE of 11.93 in comparison.
PEG Ratio for CAA
While earnings are definitely important, it is vital to know how much you are paying for the growth of earnings as well. One can easily do that with the PEG ratio as this metric looks to show investors how much they are paying for each unit of earnings growth.
CAA manages to impress on this front as well, as the company’s PEG is just 0.58, suggesting that CalAtlantic is trading as a relative bargain right now. This is particularly the case when you compare this PEG to the industry, as the broader segment has an average PEG of 0.84 in comparison.
CAA Earnings Estimate Revisions Moving in the Right Direction
The solid value ratios outlined in the preceding paragraphs might be enough for some investors, but we should also note that the earnings estimate revisions have been trending in a positive direction as well. Analysts who follow CAA stock have been raising their estimates for the company lately, meaning that the EPS picture is looking a bit more favorably for CalAtlantic now.
Over the past 30 days, 1 earnings estimate has gone higher compared to no downward revisions for the full year, while we are also seeing 1 upward revision with no downward revisions for the next year time frame too. These revisions have helped to boost the consensus estimate as 30 days ago CAA was expected to post earnings of $3.60 per share for the full year though today it looks to have EPS of $3.67 for the full year.
Bottom Line
For the reasons detailed above, investors shouldn’t be surprised to read that we have CAA as a stock with a Value Score of ‘B’ and a Zacks Rank #1 (Strong Buy). So if you are a value investor, definitely keep CAA on your short list as this looks be a stock that is very well-positioned for gains in the near term.
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3 Reasons Value Stock Investors Will Love CalAtlantic (CAA)
Many investors like to look for value in stocks, but this can be very tough to define. There is great debate regarding which metrics are the best to focus on in this regard, and which are not really quality indicators of future performance. Fortunately, with our new style score system we have identified the key statistics to pay close attention to and thus which stocks might be the best for value investors in the near term.
This method discovered several great candidates for value-oriented investors, but today let’s focus on CalAtlantic Group, Inc. as this stock is looking especially impressive right now. And while there are numerous reasons why this is the case, we have highlighted three of the most vital reasons for CAA’s status as a solid value stock below:
Forward PE for CalAtlantic
Easily one of the most popular readings for value investors, the forward PE ratio shows us the current price of a stock divided by the full year earnings. Generally speaking, value investors like to see this ratio below 20, though it can vary by industry.
Right now, CAA has a forward PE of just 10.69, which means that investors are paying $10.69 for each dollar in expected CalAtlantic earnings this year. Compared to the industry at large this is pretty favorable as the overall space has an average PE of 11.93 in comparison.
CALATLANTIC GRP PE Ratio (TTM)
CALATLANTIC GRP PE Ratio (TTM) | CALATLANTIC GRP Quote
PEG Ratio for CAA
While earnings are definitely important, it is vital to know how much you are paying for the growth of earnings as well. One can easily do that with the PEG ratio as this metric looks to show investors how much they are paying for each unit of earnings growth.
CAA manages to impress on this front as well, as the company’s PEG is just 0.58, suggesting that CalAtlantic is trading as a relative bargain right now. This is particularly the case when you compare this PEG to the industry, as the broader segment has an average PEG of 0.84 in comparison.
CAA Earnings Estimate Revisions Moving in the Right Direction
The solid value ratios outlined in the preceding paragraphs might be enough for some investors, but we should also note that the earnings estimate revisions have been trending in a positive direction as well. Analysts who follow CAA stock have been raising their estimates for the company lately, meaning that the EPS picture is looking a bit more favorably for CalAtlantic now.
Over the past 30 days, 1 earnings estimate has gone higher compared to no downward revisions for the full year, while we are also seeing 1 upward revision with no downward revisions for the next year time frame too. These revisions have helped to boost the consensus estimate as 30 days ago CAA was expected to post earnings of $3.60 per share for the full year though today it looks to have EPS of $3.67 for the full year.
Bottom Line
For the reasons detailed above, investors shouldn’t be surprised to read that we have CAA as a stock with a Value Score of ‘B’ and a Zacks Rank #1 (Strong Buy). So if you are a value investor, definitely keep CAA on your short list as this looks be a stock that is very well-positioned for gains in the near term.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>