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Is Beacon Roofing Supply (BECN) Stock Undervalued Right Now?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
Beacon Roofing Supply (BECN - Free Report) is a stock many investors are watching right now. BECN is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 12.90. This compares to its industry's average Forward P/E of 23.34. BECN's Forward P/E has been as high as 17.80 and as low as 4.55, with a median of 13.43, all within the past year.
BECN is also sporting a PEG ratio of 1.09. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. BECN's PEG compares to its industry's average PEG of 1.86. BECN's PEG has been as high as 1.34 and as low as 1.08, with a median of 1.25, all within the past year.
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 0.4. This compares to its industry's average P/S of 0.75.
Finally, we should also recognize that BECN has a P/CF ratio of 8.92. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. BECN's current P/CF looks attractive when compared to 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 7.73.
These are just a handful of the figures considered in Beacon Roofing Supply's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that BECN is an impressive value stock right now.
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Is Beacon Roofing Supply (BECN) Stock Undervalued Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
Beacon Roofing Supply (BECN - Free Report) is a stock many investors are watching right now. BECN is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 12.90. This compares to its industry's average Forward P/E of 23.34. BECN's Forward P/E has been as high as 17.80 and as low as 4.55, with a median of 13.43, all within the past year.
BECN is also sporting a PEG ratio of 1.09. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. BECN's PEG compares to its industry's average PEG of 1.86. BECN's PEG has been as high as 1.34 and as low as 1.08, with a median of 1.25, all within the past year.
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 0.4. This compares to its industry's average P/S of 0.75.
Finally, we should also recognize that BECN has a P/CF ratio of 8.92. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. BECN's current P/CF looks attractive when compared to 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 7.73.
These are just a handful of the figures considered in Beacon Roofing Supply's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that BECN is an impressive value stock right now.