Back to top

Image: Bigstock

Are Investors Undervaluing Beazer Homes (BZH) Right Now?

Read MoreHide Full Article

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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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.

One stock to keep an eye on is Beazer Homes (BZH - Free Report) . BZH is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with P/E ratio of 8.30 right now. For comparison, its industry sports an average P/E of 10.91. Over the last 12 months, BZH's Forward P/E has been as high as 13.09 and as low as 2.31, with a median of 8.12.

Another notable valuation metric for BZH is its P/B ratio of 0.75. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.27. Over the past 12 months, BZH's P/B has been as high as 1 and as low as 0.26, with a median of 0.68.

Finally, investors should note that BZH has a P/CF ratio of 8.55. 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. BZH's current P/CF looks attractive when compared to its industry's average P/CF of 8.76. Over the past 52 weeks, BZH's P/CF has been as high as 9.01 and as low as -7.55, with a median of 4.98.

These are only a few of the key metrics included in Beazer Homes'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, BZH looks like an impressive value stock at the moment.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Beazer Homes USA, Inc. (BZH) - free report >>

Published in