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Are These Construction Stocks Undervalued Right Now?
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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.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Lennar (LEN - Free Report) . LEN is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 6.10, which compares to its industry's average of 6.29. LEN's Forward P/E has been as high as 10.92 and as low as 5.74, with a median of 7.57, all within the past year.
Another notable valuation metric for LEN is its P/B ratio of 1.44. 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 attractive against its industry's average P/B of 1.46. LEN's P/B has been as high as 1.78 and as low as 1.33, with a median of 1.58, over the past year.
Finally, our model also underscores that LEN has a P/CF ratio of 6.51. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 8.14. Within the past 12 months, LEN's P/CF has been as high as 11.61 and as low as 6.13, with a median of 8.60.
Another great Building Products - Home Builders stock you could consider is M.D.C. , which is a # 2 (Buy) stock with a Value Score of A.
Shares of M.D.C. currently holds a Forward P/E ratio of 5.02, and its PEG ratio is 0.54. In comparison, its industry sports average P/E and PEG ratios of 6.29 and 0.45.
Over the past year, MDC's P/E has been as high as 8.74, as low as 4.82, with a median of 5.74; its PEG ratio has been as high as 0.82, as low as 0.53, with a median of 1.04 during the same time period.
M.D.C. also has a P/B ratio of 1.38 compared to its industry's price-to-book ratio of 1.46. Over the past year, its P/B ratio has been as high as 1.99, as low as 1.33, with a median of 1.58.
These are only a few of the key metrics included in Lennar and M.D.C. strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, LEN and MDC look like an impressive value stock at the moment.
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Are These Construction Stocks Undervalued Right Now?
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.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Lennar (LEN - Free Report) . LEN is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 6.10, which compares to its industry's average of 6.29. LEN's Forward P/E has been as high as 10.92 and as low as 5.74, with a median of 7.57, all within the past year.
Another notable valuation metric for LEN is its P/B ratio of 1.44. 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 attractive against its industry's average P/B of 1.46. LEN's P/B has been as high as 1.78 and as low as 1.33, with a median of 1.58, over the past year.
Finally, our model also underscores that LEN has a P/CF ratio of 6.51. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 8.14. Within the past 12 months, LEN's P/CF has been as high as 11.61 and as low as 6.13, with a median of 8.60.
Another great Building Products - Home Builders stock you could consider is M.D.C. , which is a # 2 (Buy) stock with a Value Score of A.
Shares of M.D.C. currently holds a Forward P/E ratio of 5.02, and its PEG ratio is 0.54. In comparison, its industry sports average P/E and PEG ratios of 6.29 and 0.45.
Over the past year, MDC's P/E has been as high as 8.74, as low as 4.82, with a median of 5.74; its PEG ratio has been as high as 0.82, as low as 0.53, with a median of 1.04 during the same time period.
M.D.C. also has a P/B ratio of 1.38 compared to its industry's price-to-book ratio of 1.46. Over the past year, its P/B ratio has been as high as 1.99, as low as 1.33, with a median of 1.58.
These are only a few of the key metrics included in Lennar and M.D.C. strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, LEN and MDC look like an impressive value stock at the moment.