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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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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.
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 stock to keep an eye on is Toll Brothers (TOL - Free Report) . TOL is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A.
We also note that TOL holds a PEG ratio of 0.21. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. TOL's PEG compares to its industry's average PEG of 0.48. Over the last 12 months, TOL's PEG has been as high as 0.75 and as low as 0.18, with a median of 0.56.
Investors should also recognize that TOL has a P/B ratio of 1.32. 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 1.36. Over the past 12 months, TOL's P/B has been as high as 1.70 and as low as 1.25, with a median of 1.46.
Tri Pointe Homes (TPH - Free Report) may be another strong Building Products - Home Builders stock to add to your shortlist. TPH is a # 2 (Buy) stock with a Value grade of A.
Tri Pointe Homes sports a P/B ratio of 1.14 as well; this compares to its industry's price-to-book ratio of 1.36. In the past 52 weeks, TPH's P/B has been as high as 1.36, as low as 0.97, with a median of 1.16.
These are just a handful of the figures considered in Toll Brothers and Tri Pointe Homes's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that TOL and TPH is an impressive value stock right now.
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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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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.
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 stock to keep an eye on is Toll Brothers (TOL - Free Report) . TOL is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A.
We also note that TOL holds a PEG ratio of 0.21. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. TOL's PEG compares to its industry's average PEG of 0.48. Over the last 12 months, TOL's PEG has been as high as 0.75 and as low as 0.18, with a median of 0.56.
Investors should also recognize that TOL has a P/B ratio of 1.32. 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 1.36. Over the past 12 months, TOL's P/B has been as high as 1.70 and as low as 1.25, with a median of 1.46.
Tri Pointe Homes (TPH - Free Report) may be another strong Building Products - Home Builders stock to add to your shortlist. TPH is a # 2 (Buy) stock with a Value grade of A.
Tri Pointe Homes sports a P/B ratio of 1.14 as well; this compares to its industry's price-to-book ratio of 1.36. In the past 52 weeks, TPH's P/B has been as high as 1.36, as low as 0.97, with a median of 1.16.
These are just a handful of the figures considered in Toll Brothers and Tri Pointe Homes's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that TOL and TPH is an impressive value stock right now.