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Is Beacon Roofing Supply (BECN) Stock Undervalued Right Now?
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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, value investing is easily one of the most popular ways to find great stocks in any market environment. 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.
Beacon Roofing Supply (BECN - Free Report) is a stock many investors are watching right now. BECN is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 15.43 right now. For comparison, its industry sports an average P/E of 21.71. Over the past year, BECN's Forward P/E has been as high as 17.80 and as low as 4.55, with a median of 12.57.
BECN is also sporting a PEG ratio of 1.09. 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. BECN's PEG compares to its industry's average PEG of 1.73. Within the past year, BECN's PEG has been as high as 1.34 and as low as 1, with a median of 1.12.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. BECN has a P/S ratio of 0.35. This compares to its industry's average P/S of 0.68.
Finally, we should also recognize that BECN has a P/CF ratio of 8.95. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 15.41. Over the past 52 weeks, BECN's P/CF has been as high as 10.36 and as low as 2.85, with a median of 7.75.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Beacon Roofing Supply is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BECN feels like a great value stock at the moment.
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Is Beacon Roofing Supply (BECN) Stock Undervalued Right Now?
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, value investing is easily one of the most popular ways to find great stocks in any market environment. 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.
Beacon Roofing Supply (BECN - Free Report) is a stock many investors are watching right now. BECN is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 15.43 right now. For comparison, its industry sports an average P/E of 21.71. Over the past year, BECN's Forward P/E has been as high as 17.80 and as low as 4.55, with a median of 12.57.
BECN is also sporting a PEG ratio of 1.09. 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. BECN's PEG compares to its industry's average PEG of 1.73. Within the past year, BECN's PEG has been as high as 1.34 and as low as 1, with a median of 1.12.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. BECN has a P/S ratio of 0.35. This compares to its industry's average P/S of 0.68.
Finally, we should also recognize that BECN has a P/CF ratio of 8.95. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 15.41. Over the past 52 weeks, BECN's P/CF has been as high as 10.36 and as low as 2.85, with a median of 7.75.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Beacon Roofing Supply is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BECN feels like a great value stock at the moment.