Investors interested in stocks from the Building Products - Miscellaneous sector have probably already heard of Continental Building Products and PGT . But which of these two stocks presents investors with the better value opportunity right now? 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.
Currently, Continental Building Products has a Zacks Rank of #1 (Strong Buy), while PGT has a Zacks Rank of #2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that CBPX has an improving earnings outlook. But this is just one factor that value investors are interested in.
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 highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
CBPX currently has a forward P/E ratio of 14.79, while PGTI has a forward P/E of 19.95. We also note that CBPX has a PEG ratio of 0.49. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. PGTI currently has a PEG ratio of 1.12.
Another notable valuation metric for CBPX is its P/B ratio of 3.36. 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. By comparison, PGTI has a P/B of 5.29.
These metrics, and several others, help CBPX earn a Value grade of B, while PGTI has been given a Value grade of C.
CBPX stands above PGTI thanks to its solid earnings outlook, and based on these valuation figures, we also feel that CBPX is the superior value option right now.
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CBPX vs. PGTI: Which Stock Is the Better Value Option?
Investors interested in stocks from the Building Products - Miscellaneous sector have probably already heard of Continental Building Products and PGT . But which of these two stocks presents investors with the better value opportunity right now? 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.
Currently, Continental Building Products has a Zacks Rank of #1 (Strong Buy), while PGT has a Zacks Rank of #2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that CBPX has an improving earnings outlook. But this is just one factor that value investors are interested in.
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 highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
CBPX currently has a forward P/E ratio of 14.79, while PGTI has a forward P/E of 19.95. We also note that CBPX has a PEG ratio of 0.49. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. PGTI currently has a PEG ratio of 1.12.
Another notable valuation metric for CBPX is its P/B ratio of 3.36. 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. By comparison, PGTI has a P/B of 5.29.
These metrics, and several others, help CBPX earn a Value grade of B, while PGTI has been given a Value grade of C.
CBPX stands above PGTI thanks to its solid earnings outlook, and based on these valuation figures, we also feel that CBPX is the superior value option right now.