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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.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
M.D.C. is a stock many investors are watching right now. MDC is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 3.94. This compares to its industry's average Forward P/E of 5.39. Over the last 12 months, MDC's Forward P/E has been as high as 8.74 and as low as 3.80, with a median of 5.67.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. 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 0.59. This compares to its industry's average P/S of 0.6.
Finally, we should also recognize that MDC has a P/CF ratio of 5.10. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 5.78. MDC's P/CF has been as high as 11.02 and as low as 4.92, with a median of 6.79, all within the past year.
Another great Building Products - Home Builders stock you could consider is Taylor Morrison Home (TMHC - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Taylor Morrison Home also has a P/B ratio of 0.87 compared to its industry's price-to-book ratio of 1.08. Over the past year, its P/B ratio has been as high as 1.16, as low as 0.78, with a median of 0.98.
Value investors will likely look at more than just these metrics, but the above data helps show that M.D.C. and Taylor Morrison Home are likely undervalued currently. And when considering the strength of its earnings outlook, MDC and TMHC sticks out as one of the market's strongest value stocks.
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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.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
M.D.C. is a stock many investors are watching right now. MDC is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 3.94. This compares to its industry's average Forward P/E of 5.39. Over the last 12 months, MDC's Forward P/E has been as high as 8.74 and as low as 3.80, with a median of 5.67.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. 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 0.59. This compares to its industry's average P/S of 0.6.
Finally, we should also recognize that MDC has a P/CF ratio of 5.10. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 5.78. MDC's P/CF has been as high as 11.02 and as low as 4.92, with a median of 6.79, all within the past year.
Another great Building Products - Home Builders stock you could consider is Taylor Morrison Home (TMHC - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Taylor Morrison Home also has a P/B ratio of 0.87 compared to its industry's price-to-book ratio of 1.08. Over the past year, its P/B ratio has been as high as 1.16, as low as 0.78, with a median of 0.98.
Value investors will likely look at more than just these metrics, but the above data helps show that M.D.C. and Taylor Morrison Home are likely undervalued currently. And when considering the strength of its earnings outlook, MDC and TMHC sticks out as one of the market's strongest value stocks.