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Are Investors Undervaluing Beazer Homes (BZH) Right Now?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is Beazer Homes (BZH - Free Report) . BZH is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 7.18, while its industry has an average P/E of 11.54. BZH's Forward P/E has been as high as 13.09 and as low as 2.31, with a median of 8.24, all within the past year.
Another notable valuation metric for BZH is its P/B ratio of 0.78. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against 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, our model also underscores that BZH has a P/CF ratio of 6.53. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. BZH's P/CF compares to its industry's average P/CF of 8.76. Over the past 52 weeks, BZH's P/CF has been as high as 8.41 and as low as -7.55, with a median of 6.22.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Beazer Homes is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BZH feels like a great value stock at the moment.
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Are Investors Undervaluing Beazer Homes (BZH) Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is Beazer Homes (BZH - Free Report) . BZH is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 7.18, while its industry has an average P/E of 11.54. BZH's Forward P/E has been as high as 13.09 and as low as 2.31, with a median of 8.24, all within the past year.
Another notable valuation metric for BZH is its P/B ratio of 0.78. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against 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, our model also underscores that BZH has a P/CF ratio of 6.53. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. BZH's P/CF compares to its industry's average P/CF of 8.76. Over the past 52 weeks, BZH's P/CF has been as high as 8.41 and as low as -7.55, with a median of 6.22.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Beazer Homes is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BZH feels like a great value stock at the moment.