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Is Beacon Roofing Supply (BECN) a Great Value Stock 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.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
Beacon Roofing Supply (BECN - Free Report) is a stock many investors are watching right now. BECN is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 10.93 right now. For comparison, its industry sports an average P/E of 16.46. Over the past year, BECN's Forward P/E has been as high as 18.28 and as low as 9.59, with a median of 11.46.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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. BECN has a P/S ratio of 0.6. This compares to its industry's average P/S of 0.77.
Value investors will likely look at more than just these metrics, but the above data helps show that Beacon Roofing Supply is likely undervalued currently. And when considering the strength of its earnings outlook, BECN sticks out at as one of the market's strongest value stocks.
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Is Beacon Roofing Supply (BECN) a Great Value Stock 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.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
Beacon Roofing Supply (BECN - Free Report) is a stock many investors are watching right now. BECN is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 10.93 right now. For comparison, its industry sports an average P/E of 16.46. Over the past year, BECN's Forward P/E has been as high as 18.28 and as low as 9.59, with a median of 11.46.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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. BECN has a P/S ratio of 0.6. This compares to its industry's average P/S of 0.77.
Value investors will likely look at more than just these metrics, but the above data helps show that Beacon Roofing Supply is likely undervalued currently. And when considering the strength of its earnings outlook, BECN sticks out at as one of the market's strongest value stocks.