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Should Value Investors Buy Green Brick Partners (GRBK) Stock?
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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, 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 company value investors might notice is Green Brick Partners (GRBK - Free Report) . GRBK is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 6.74 right now. For comparison, its industry sports an average P/E of 11.61. GRBK's Forward P/E has been as high as 9.40 and as low as 5.40, with a median of 7.72, 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. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. GRBK has a P/S ratio of 1.17. This compares to its industry's average P/S of 2.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Green Brick Partners is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, GRBK feels like a great value stock at the moment.
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Should Value Investors Buy Green Brick Partners (GRBK) Stock?
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, 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 company value investors might notice is Green Brick Partners (GRBK - Free Report) . GRBK is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 6.74 right now. For comparison, its industry sports an average P/E of 11.61. GRBK's Forward P/E has been as high as 9.40 and as low as 5.40, with a median of 7.72, 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. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. GRBK has a P/S ratio of 1.17. This compares to its industry's average P/S of 2.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Green Brick Partners is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, GRBK feels like a great value stock at the moment.