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CPAC vs. VMC: Which Stock Is the Better Value Option?
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Investors with an interest in Building Products - Concrete and Aggregates stocks have likely encountered both Pacasmayo (CPAC - Free Report) and Vulcan Materials (VMC - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Pacasmayo and Vulcan Materials are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that CPAC is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
CPAC currently has a forward P/E ratio of 20.34, while VMC has a forward P/E of 29.19. We also note that CPAC has a PEG ratio of 0.71. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. VMC currently has a PEG ratio of 1.39.
Another notable valuation metric for CPAC is its P/B ratio of 2.10. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, VMC has a P/B of 3.50.
These metrics, and several others, help CPAC earn a Value grade of B, while VMC has been given a Value grade of D.
CPAC is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that CPAC is likely the superior value option right now.
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CPAC vs. VMC: Which Stock Is the Better Value Option?
Investors with an interest in Building Products - Concrete and Aggregates stocks have likely encountered both Pacasmayo (CPAC - Free Report) and Vulcan Materials (VMC - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Pacasmayo and Vulcan Materials are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that CPAC is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
CPAC currently has a forward P/E ratio of 20.34, while VMC has a forward P/E of 29.19. We also note that CPAC has a PEG ratio of 0.71. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. VMC currently has a PEG ratio of 1.39.
Another notable valuation metric for CPAC is its P/B ratio of 2.10. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, VMC has a P/B of 3.50.
These metrics, and several others, help CPAC earn a Value grade of B, while VMC has been given a Value grade of D.
CPAC is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that CPAC is likely the superior value option right now.