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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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
One stock to keep an eye on is Lennar (LEN - Free Report) . LEN is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 9.37 right now. For comparison, its industry sports an average P/E of 11.42. Over the past year, LEN's Forward P/E has been as high as 12.14 and as low as 4.67, with a median of 9.93.
We also note that LEN holds a PEG ratio of 1.08. 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. LEN's industry currently sports an average PEG of 2.27. LEN's PEG has been as high as 3.76 and as low as 0.50, with a median of 1.01, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Lennar is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, LEN feels like a great value stock at the moment.
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Is Lennar (LEN) a Great Value Stock 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
One stock to keep an eye on is Lennar (LEN - Free Report) . LEN is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 9.37 right now. For comparison, its industry sports an average P/E of 11.42. Over the past year, LEN's Forward P/E has been as high as 12.14 and as low as 4.67, with a median of 9.93.
We also note that LEN holds a PEG ratio of 1.08. 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. LEN's industry currently sports an average PEG of 2.27. LEN's PEG has been as high as 3.76 and as low as 0.50, with a median of 1.01, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Lennar is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, LEN feels like a great value stock at the moment.