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ACA vs. ROAD: Which Stock Should Value Investors Buy Now?
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Investors looking for stocks in the Building Products - Miscellaneous sector might want to consider either Arcosa (ACA - Free Report) or Construction Partners (ROAD - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Arcosa and Construction Partners 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 ACA is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture 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.
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.
ACA currently has a forward P/E ratio of 18.14, while ROAD has a forward P/E of 24.81. We also note that ACA has a PEG ratio of 4.03. 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. ROAD currently has a PEG ratio of 4.15.
Another notable valuation metric for ACA is its P/B ratio of 1.21. 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, ROAD has a P/B of 2.87.
These are just a few of the metrics contributing to ACA's Value grade of B and ROAD's Value grade of C.
ACA stands above ROAD thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ACA is the superior value option right now.
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ACA vs. ROAD: Which Stock Should Value Investors Buy Now?
Investors looking for stocks in the Building Products - Miscellaneous sector might want to consider either Arcosa (ACA - Free Report) or Construction Partners (ROAD - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Arcosa and Construction Partners 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 ACA is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture 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.
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.
ACA currently has a forward P/E ratio of 18.14, while ROAD has a forward P/E of 24.81. We also note that ACA has a PEG ratio of 4.03. 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. ROAD currently has a PEG ratio of 4.15.
Another notable valuation metric for ACA is its P/B ratio of 1.21. 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, ROAD has a P/B of 2.87.
These are just a few of the metrics contributing to ACA's Value grade of B and ROAD's Value grade of C.
ACA stands above ROAD thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ACA is the superior value option right now.