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Should Value Investors Buy Installed Building Products (IBP) Stock?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 company value investors might notice is Installed Building Products (IBP - Free Report) . IBP is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 10.09. This compares to its industry's average Forward P/E of 10.86. Over the last 12 months, IBP's Forward P/E has been as high as 24.54 and as low as 9.22, with a median of 13.45.
Finally, we should also recognize that IBP has a P/CF ratio of 8.81. 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. IBP's current P/CF looks attractive when compared to its industry's average P/CF of 13.40. IBP's P/CF has been as high as 18.81 and as low as 8.04, with a median of 11.72, all within the past year.
These are only a few of the key metrics included in Installed Building Products's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, IBP looks like an impressive value stock at the moment.
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Should Value Investors Buy Installed Building Products (IBP) Stock?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 company value investors might notice is Installed Building Products (IBP - Free Report) . IBP is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 10.09. This compares to its industry's average Forward P/E of 10.86. Over the last 12 months, IBP's Forward P/E has been as high as 24.54 and as low as 9.22, with a median of 13.45.
Finally, we should also recognize that IBP has a P/CF ratio of 8.81. 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. IBP's current P/CF looks attractive when compared to its industry's average P/CF of 13.40. IBP's P/CF has been as high as 18.81 and as low as 8.04, with a median of 11.72, all within the past year.
These are only a few of the key metrics included in Installed Building Products's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, IBP looks like an impressive value stock at the moment.