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Are These Construction Stocks 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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 M.D.C. . MDC is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 4.29 right now. For comparison, its industry sports an average P/E of 5.74. MDC's Forward P/E has been as high as 8.74 and as low as 4.18, with a median of 5.71, all within the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. MDC has a P/S ratio of 0.61. This compares to its industry's average P/S of 0.66.
Finally, investors should note that MDC has a P/CF ratio of 5.42. 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. MDC's P/CF compares to its industry's average P/CF of 7.75. Within the past 12 months, MDC's P/CF has been as high as 11.02 and as low as 5.28, with a median of 6.86.
Another great Building Products - Home Builders stock you could consider is PulteGroup (PHM - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Shares of PulteGroup are currently trading at a forward earnings multiple of 4.92 and a PEG ratio of 0.53 compared to its industry's P/E and PEG ratios of 5.74 and 0.49, respectively.
Over the past year, PHM's P/E has been as high as 9.56, as low as 4.78, with a median of 6.49; its PEG ratio has been as high as 1.01, as low as 0.24, with a median of 0.76 during the same time period.
PulteGroup sports a P/B ratio of 1.70 as well; this compares to its industry's price-to-book ratio of 1.01. In the past 52 weeks, PHM's P/B has been as high as 2.45, as low as 1.63, with a median of 1.96.
These are just a handful of the figures considered in M.D.C. and PulteGroup'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 MDC and PHM is an impressive value stock right now.
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Are These Construction Stocks 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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 M.D.C. . MDC is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 4.29 right now. For comparison, its industry sports an average P/E of 5.74. MDC's Forward P/E has been as high as 8.74 and as low as 4.18, with a median of 5.71, all within the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. MDC has a P/S ratio of 0.61. This compares to its industry's average P/S of 0.66.
Finally, investors should note that MDC has a P/CF ratio of 5.42. 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. MDC's P/CF compares to its industry's average P/CF of 7.75. Within the past 12 months, MDC's P/CF has been as high as 11.02 and as low as 5.28, with a median of 6.86.
Another great Building Products - Home Builders stock you could consider is PulteGroup (PHM - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Shares of PulteGroup are currently trading at a forward earnings multiple of 4.92 and a PEG ratio of 0.53 compared to its industry's P/E and PEG ratios of 5.74 and 0.49, respectively.
Over the past year, PHM's P/E has been as high as 9.56, as low as 4.78, with a median of 6.49; its PEG ratio has been as high as 1.01, as low as 0.24, with a median of 0.76 during the same time period.
PulteGroup sports a P/B ratio of 1.70 as well; this compares to its industry's price-to-book ratio of 1.01. In the past 52 weeks, PHM's P/B has been as high as 2.45, as low as 1.63, with a median of 1.96.
These are just a handful of the figures considered in M.D.C. and PulteGroup'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 MDC and PHM is an impressive value stock right now.