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Is Century Communities (CCS) Stock 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.
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 stock to keep an eye on is Century Communities (CCS - Free Report) . CCS is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 2.78, which compares to its industry's average of 4.62. Over the last 12 months, CCS's Forward P/E has been as high as 6.47 and as low as 2.55, with a median of 4.61.
We should also highlight that CCS has a P/B ratio of 0.98. The P/B ratio is used to compare a stock's market value with 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 1.12. CCS's P/B has been as high as 1.95 and as low as 0.85, with a median of 1.40, over the past year.
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. CCS has a P/S ratio of 0.41. This compares to its industry's average P/S of 0.61.
Finally, we should also recognize that CCS has a P/CF ratio of 3.35. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. CCS's P/CF compares to its industry's average P/CF of 4.93. Within the past 12 months, CCS's P/CF has been as high as 9.15 and as low as 2.93, with a median of 5.35.
Landsea Homes (LSEA - Free Report) may be another strong Building Products - Home Builders stock to add to your shortlist. LSEA is a # 1 (Strong Buy) stock with a Value grade of A.
Landsea Homes sports a P/B ratio of 0.58 as well; this compares to its industry's price-to-book ratio of 1.12. In the past 52 weeks, LSEA's P/B has been as high as 0.76, as low as 0.47, with a median of 0.65.
These are only a few of the key metrics included in Century Communities and Landsea Homes strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, CCS and LSEA look like an impressive value stock at the moment.
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Is Century Communities (CCS) Stock 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.
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 stock to keep an eye on is Century Communities (CCS - Free Report) . CCS is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 2.78, which compares to its industry's average of 4.62. Over the last 12 months, CCS's Forward P/E has been as high as 6.47 and as low as 2.55, with a median of 4.61.
We should also highlight that CCS has a P/B ratio of 0.98. The P/B ratio is used to compare a stock's market value with 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 1.12. CCS's P/B has been as high as 1.95 and as low as 0.85, with a median of 1.40, over the past year.
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. CCS has a P/S ratio of 0.41. This compares to its industry's average P/S of 0.61.
Finally, we should also recognize that CCS has a P/CF ratio of 3.35. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. CCS's P/CF compares to its industry's average P/CF of 4.93. Within the past 12 months, CCS's P/CF has been as high as 9.15 and as low as 2.93, with a median of 5.35.
Landsea Homes (LSEA - Free Report) may be another strong Building Products - Home Builders stock to add to your shortlist. LSEA is a # 1 (Strong Buy) stock with a Value grade of A.
Landsea Homes sports a P/B ratio of 0.58 as well; this compares to its industry's price-to-book ratio of 1.12. In the past 52 weeks, LSEA's P/B has been as high as 0.76, as low as 0.47, with a median of 0.65.
These are only a few of the key metrics included in Century Communities and Landsea Homes strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, CCS and LSEA look like an impressive value stock at the moment.