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Is Green Brick Partners (GRBK) a Great Value Stock Right Now?

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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, 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.

Green Brick Partners (GRBK - Free Report) is a stock many investors are watching right now. GRBK is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. GRBK has a P/S ratio of 1.06. This compares to its industry's average P/S of 2.2.

Finally, our model also underscores that GRBK has a P/CF ratio of 9.84. 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. GRBK's P/CF compares to its industry's average P/CF of 37.93. GRBK's P/CF has been as high as 12.08 and as low as 4.85, with a median of 9.04, all within the past year.

Value investors will likely look at more than just these metrics, but the above data helps show that Green Brick Partners is likely undervalued currently. And when considering the strength of its earnings outlook, GRBK sticks out at as one of the market's strongest value stocks.


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