Is Installed Building Products (IBP) a Great Value Stock Right Now?

IBP

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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

Installed Building Products (IBP - Free Report) is a stock many investors are watching right now. IBP is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. IBP has a P/S ratio of 1.25. This compares to its industry's average P/S of 1.26.

Finally, we should also recognize that IBP has a P/CF ratio of 10.31. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. IBP's P/CF compares to its industry's average P/CF of 12.36. IBP's P/CF has been as high as 18.81 and as low as 8.52, with a median of 14.04, all within the past year.

These are only a few of the key metrics included in Installed Building Products's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, IBP looks like an impressive value stock at the moment.

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