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Are Investors Undervaluing UFP Industries (UFPI) 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.

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.

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.

One stock to keep an eye on is UFP Industries (UFPI - Free Report) . UFPI 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 8.92, which compares to its industry's average of 14.87. Over the past 52 weeks, UFPI's Forward P/E has been as high as 13.44 and as low as 7, with a median of 10.31.

We should also highlight that UFPI has a P/B ratio of 2.32. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 2.82. Over the past year, UFPI's P/B has been as high as 3.08 and as low as 1.81, with a median of 2.46.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. UFPI has a P/S ratio of 0.58. This compares to its industry's average P/S of 1.68.

Finally, we should also recognize that UFPI has a P/CF ratio of 7.27. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 12.40. Over the past 52 weeks, UFPI's P/CF has been as high as 10.57 and as low as 5.66, with a median of 8.19.

These figures are just a handful of the metrics value investors tend to look at, but they help show that UFP Industries is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, UFPI feels like a great value stock at the moment.


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