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Is Beazer Homes (BZH) a Great Value Stock 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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 stock to keep an eye on is Beazer Homes (BZH - Free Report) . BZH is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 8.07. This compares to its industry's average Forward P/E of 11.38. Over the past 52 weeks, BZH's Forward P/E has been as high as 13.09 and as low as 2.31, with a median of 8.48.

Another valuation metric that we should highlight is BZH's P/B ratio of 1. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.27. Within the past 52 weeks, BZH's P/B has been as high as 1.12 and as low as 0.26, with a median of 0.69.

Finally, our model also underscores that BZH has a P/CF ratio of 7.58. 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 current P/CF looks attractive when compared to its industry's average P/CF of 8.76. Over the past year, BZH's P/CF has been as high as 8.53 and as low as -3.24, with a median of 6.76.

These are only a few of the key metrics included in Beazer Homes'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, BZH looks like an impressive value stock at the moment.


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