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Is Beacon Roofing Supply (BECN) Stock Undervalued Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 company to watch right now is Beacon Roofing Supply (BECN - Free Report) . BECN is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 13.42, while its industry has an average P/E of 23.21. Over the past 52 weeks, BECN's Forward P/E has been as high as 17.80 and as low as 4.55, with a median of 13.58.
Investors should also note that BECN holds a PEG ratio of 1.09. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. BECN's industry has an average PEG of 1.85 right now. BECN's PEG has been as high as 1.34 and as low as 1.08, with a median of 1.22, all within the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. 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 0.41. This compares to its industry's average P/S of 0.79.
Finally, investors will want to recognize that BECN has a P/CF ratio of 9.31. 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. BECN's current P/CF looks attractive when compared to its industry's average P/CF of 15.41. Within the past 12 months, BECN's P/CF has been as high as 10.31 and as low as 2.85, with a median of 7.73.
Value investors will likely look at more than just these metrics, but the above data helps show that Beacon Roofing Supply is likely undervalued currently. And when considering the strength of its earnings outlook, BECN sticks out at as one of the market's strongest value stocks.
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Is Beacon Roofing Supply (BECN) Stock Undervalued Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 company to watch right now is Beacon Roofing Supply (BECN - Free Report) . BECN is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 13.42, while its industry has an average P/E of 23.21. Over the past 52 weeks, BECN's Forward P/E has been as high as 17.80 and as low as 4.55, with a median of 13.58.
Investors should also note that BECN holds a PEG ratio of 1.09. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. BECN's industry has an average PEG of 1.85 right now. BECN's PEG has been as high as 1.34 and as low as 1.08, with a median of 1.22, all within the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. 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 0.41. This compares to its industry's average P/S of 0.79.
Finally, investors will want to recognize that BECN has a P/CF ratio of 9.31. 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. BECN's current P/CF looks attractive when compared to its industry's average P/CF of 15.41. Within the past 12 months, BECN's P/CF has been as high as 10.31 and as low as 2.85, with a median of 7.73.
Value investors will likely look at more than just these metrics, but the above data helps show that Beacon Roofing Supply is likely undervalued currently. And when considering the strength of its earnings outlook, BECN sticks out at as one of the market's strongest value stocks.