We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Should Value Investors Buy PGT Innovations (PGTI) Stock?
Read MoreHide Full Article
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.
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 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.
PGT Innovations is a stock many investors are watching right now. PGTI is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
Investors should also recognize that PGTI has a P/B ratio of 2.45. The P/B ratio pits a stock's market value against 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 2.92. PGTI's P/B has been as high as 2.63 and as low as 1.72, with a median of 2.22, over the past year.
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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. PGTI has a P/S ratio of 1. This compares to its industry's average P/S of 1.01.
Finally, our model also underscores that PGTI has a P/CF ratio of 11.44. 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. PGTI's P/CF compares to its industry's average P/CF of 13.48. Over the past 52 weeks, PGTI's P/CF has been as high as 18.93 and as low as 8.03, with a median of 12.98.
Another great Building Products - Miscellaneous stock you could consider is United Rentals (URI - Free Report) , which is a # 1 (Strong Buy) stock with a Value Score of A.
Shares of United Rentals currently holds a Forward P/E ratio of 8.20, and its PEG ratio is 0.47. In comparison, its industry sports average P/E and PEG ratios of 10.66 and 1.04.
URI's price-to-earnings ratio has been as high as 15.80 and as low as 7.49, with a median of 10.96, while its PEG ratio has been as high as 0.96 and as low as 0.43, with a median of 0.65, all within the past year.
United Rentals sports a P/B ratio of 3.26 as well; this compares to its industry's price-to-book ratio of 2.92. In the past 52 weeks, URI's P/B has been as high as 5.19, as low as 2.78, with a median of 3.78.
These are just a handful of the figures considered in PGT Innovations and United Rentals's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that PGTI and URI is an impressive value stock right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Should Value Investors Buy PGT Innovations (PGTI) 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.
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 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.
PGT Innovations is a stock many investors are watching right now. PGTI is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
Investors should also recognize that PGTI has a P/B ratio of 2.45. The P/B ratio pits a stock's market value against 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 2.92. PGTI's P/B has been as high as 2.63 and as low as 1.72, with a median of 2.22, over the past year.
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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. PGTI has a P/S ratio of 1. This compares to its industry's average P/S of 1.01.
Finally, our model also underscores that PGTI has a P/CF ratio of 11.44. 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. PGTI's P/CF compares to its industry's average P/CF of 13.48. Over the past 52 weeks, PGTI's P/CF has been as high as 18.93 and as low as 8.03, with a median of 12.98.
Another great Building Products - Miscellaneous stock you could consider is United Rentals (URI - Free Report) , which is a # 1 (Strong Buy) stock with a Value Score of A.
Shares of United Rentals currently holds a Forward P/E ratio of 8.20, and its PEG ratio is 0.47. In comparison, its industry sports average P/E and PEG ratios of 10.66 and 1.04.
URI's price-to-earnings ratio has been as high as 15.80 and as low as 7.49, with a median of 10.96, while its PEG ratio has been as high as 0.96 and as low as 0.43, with a median of 0.65, all within the past year.
United Rentals sports a P/B ratio of 3.26 as well; this compares to its industry's price-to-book ratio of 2.92. In the past 52 weeks, URI's P/B has been as high as 5.19, as low as 2.78, with a median of 3.78.
These are just a handful of the figures considered in PGT Innovations and United Rentals's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that PGTI and URI is an impressive value stock right now.