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Is Century Communities (CCS) Stock Undervalued Right Now?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 to watch right now is Century Communities (CCS - Free Report) . CCS is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 5.13, while its industry has an average P/E of 8.10. Over the past 52 weeks, CCS's Forward P/E has been as high as 9.93 and as low as 5.08, with a median of 7.59.
Another valuation metric that we should highlight is CCS's P/B ratio of 1.54. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. CCS's current P/B looks attractive when compared to its industry's average P/B of 1.60. Over the past 12 months, CCS's P/B has been as high as 2.01 and as low as 0.87, with a median of 1.25.
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. CCS has a P/S ratio of 0.59. This compares to its industry's average P/S of 0.89.
Finally, our model also underscores that CCS has a P/CF ratio of 7.22. 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. CCS's current P/CF looks attractive when compared to its industry's average P/CF of 7.97. Within the past 12 months, CCS's P/CF has been as high as 10.01 and as low as 6.19, with a median of 8.05.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Century Communities is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CCS feels like a great value stock at the moment.
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Is Century Communities (CCS) Stock Undervalued Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 to watch right now is Century Communities (CCS - Free Report) . CCS is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 5.13, while its industry has an average P/E of 8.10. Over the past 52 weeks, CCS's Forward P/E has been as high as 9.93 and as low as 5.08, with a median of 7.59.
Another valuation metric that we should highlight is CCS's P/B ratio of 1.54. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. CCS's current P/B looks attractive when compared to its industry's average P/B of 1.60. Over the past 12 months, CCS's P/B has been as high as 2.01 and as low as 0.87, with a median of 1.25.
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. CCS has a P/S ratio of 0.59. This compares to its industry's average P/S of 0.89.
Finally, our model also underscores that CCS has a P/CF ratio of 7.22. 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. CCS's current P/CF looks attractive when compared to its industry's average P/CF of 7.97. Within the past 12 months, CCS's P/CF has been as high as 10.01 and as low as 6.19, with a median of 8.05.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Century Communities is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CCS feels like a great value stock at the moment.