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Should Value Investors Buy UFP Industries (UFPI) Stock?
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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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is UFP Industries (UFPI - Free Report) . UFPI is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A.
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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. UFPI has a P/S ratio of 0.86. This compares to its industry's average P/S of 2.
Finally, investors will want to recognize that UFPI has a P/CF ratio of 13.52. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. UFPI's current P/CF looks attractive when compared to its industry's average P/CF of 23.65. Over the past year, UFPI's P/CF has been as high as 14.76 and as low as 7.74, with a median of 11.50.
These are only a few of the key metrics included in UFP Industries's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, UFPI looks like an impressive value stock at the moment.
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Should Value Investors Buy UFP Industries (UFPI) Stock?
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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is UFP Industries (UFPI - Free Report) . UFPI is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A.
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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. UFPI has a P/S ratio of 0.86. This compares to its industry's average P/S of 2.
Finally, investors will want to recognize that UFPI has a P/CF ratio of 13.52. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. UFPI's current P/CF looks attractive when compared to its industry's average P/CF of 23.65. Over the past year, UFPI's P/CF has been as high as 14.76 and as low as 7.74, with a median of 11.50.
These are only a few of the key metrics included in UFP Industries's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, UFPI looks like an impressive value stock at the moment.