Investors looking for stocks in the Building Products - Concrete and Aggregates sector might want to consider either HeidelbergCement AG (HDELY - Free Report) or 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.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
HeidelbergCement AG and Vulcan Materials are both sporting a Zacks Rank of # 1 (Strong Buy) right now. This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. However, value investors will care about much more than just this.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
HDELY currently has a forward P/E ratio of 8.02, while VMC has a forward P/E of 31.04. We also note that HDELY has a PEG ratio of 1.20. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. VMC currently has a PEG ratio of 1.50.
Another notable valuation metric for HDELY is its P/B ratio of 0.79. 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 3.72.
Based on these metrics and many more, HDELY holds a Value grade of A, while VMC has a Value grade of D.
Both HDELY and VMC are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that HDELY is the superior value option right now.
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Investors looking for stocks in the Building Products - Concrete and Aggregates sector might want to consider either HeidelbergCement AG (HDELY - Free Report) or 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.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
HeidelbergCement AG and Vulcan Materials are both sporting a Zacks Rank of # 1 (Strong Buy) right now. This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. However, value investors will care about much more than just this.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
HDELY currently has a forward P/E ratio of 8.02, while VMC has a forward P/E of 31.04. We also note that HDELY has a PEG ratio of 1.20. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. VMC currently has a PEG ratio of 1.50.
Another notable valuation metric for HDELY is its P/B ratio of 0.79. 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 3.72.
Based on these metrics and many more, HDELY holds a Value grade of A, while VMC has a Value grade of D.
Both HDELY and VMC are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that HDELY is the superior value option right now.
Free – 5 Dividend Stocks to Fund Your Retirement
Zacks Investment Research has released a Special Report to help you prepare for retirement with 5 diverse stocks that pay whopping dividends. They cut across property management, upscale outlets, financial institutions, and a couple of strong energy producers.
5 Dividend Stocks to Include in Your Retirement Strategy is packed with unconventional wisdom and insights you won’t get from your neighborhood financial planner.
Download Now – Today It’s FREE >>
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