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Are Investors Undervaluing Beazer Homes USA (BZH) Right Now?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
One stock to keep an eye on is Beazer Homes USA (BZH - Free Report) . BZH is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 5.53, while its industry has an average P/E of 10.41. Over the last 12 months, BZH's Forward P/E has been as high as 5.53 and as low as 1.61, with a median of 2.82.
Another notable valuation metric for BZH is its P/B ratio of 0.67. The P/B ratio pits a stock's market value against 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 1.01. Over the past 12 months, BZH's P/B has been as high as 0.67 and as low as 0.32, with a median of 0.48.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. BZH has a P/S ratio of 0.26. This compares to its industry's average P/S of 0.65.
Finally, investors will want to recognize that BZH has a P/CF ratio of 3.06. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. BZH's current P/CF looks attractive when compared to its industry's average P/CF of 6.29. BZH's P/CF has been as high as 3.06 and as low as 1.27, with a median of 2.05, all within the past year.
Dream Finders Homes (DFH - Free Report) may be another strong Building Products - Home Builders stock to add to your shortlist. DFH is a # 2 (Buy) stock with a Value grade of A.
Shares of Dream Finders Homes are currently trading at a forward earnings multiple of 8.31 and a PEG ratio of 0.68 compared to its industry's P/E and PEG ratios of 10.41 and 0.83, respectively.
DFH's Forward P/E has been as high as 8.58 and as low as 3.52, with a median of 4.89. During the same time period, its PEG ratio has been as high as 0.70, as low as 0.09, with a median of 0.26.
Furthermore, Dream Finders Homes holds a P/B ratio of 2.20 and its industry's price-to-book ratio is 1.01. DFH's P/B has been as high as 3.87, as low as 1.25, with a median of 1.89 over the past 12 months.
These are just a handful of the figures considered in Beazer Homes USA and Dream Finders Homes'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 BZH and DFH is an impressive value stock right now.
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Are Investors Undervaluing Beazer Homes USA (BZH) Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
One stock to keep an eye on is Beazer Homes USA (BZH - Free Report) . BZH is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 5.53, while its industry has an average P/E of 10.41. Over the last 12 months, BZH's Forward P/E has been as high as 5.53 and as low as 1.61, with a median of 2.82.
Another notable valuation metric for BZH is its P/B ratio of 0.67. The P/B ratio pits a stock's market value against 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 1.01. Over the past 12 months, BZH's P/B has been as high as 0.67 and as low as 0.32, with a median of 0.48.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. BZH has a P/S ratio of 0.26. This compares to its industry's average P/S of 0.65.
Finally, investors will want to recognize that BZH has a P/CF ratio of 3.06. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. BZH's current P/CF looks attractive when compared to its industry's average P/CF of 6.29. BZH's P/CF has been as high as 3.06 and as low as 1.27, with a median of 2.05, all within the past year.
Dream Finders Homes (DFH - Free Report) may be another strong Building Products - Home Builders stock to add to your shortlist. DFH is a # 2 (Buy) stock with a Value grade of A.
Shares of Dream Finders Homes are currently trading at a forward earnings multiple of 8.31 and a PEG ratio of 0.68 compared to its industry's P/E and PEG ratios of 10.41 and 0.83, respectively.
DFH's Forward P/E has been as high as 8.58 and as low as 3.52, with a median of 4.89. During the same time period, its PEG ratio has been as high as 0.70, as low as 0.09, with a median of 0.26.
Furthermore, Dream Finders Homes holds a P/B ratio of 2.20 and its industry's price-to-book ratio is 1.01. DFH's P/B has been as high as 3.87, as low as 1.25, with a median of 1.89 over the past 12 months.
These are just a handful of the figures considered in Beazer Homes USA and Dream Finders Homes'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 BZH and DFH is an impressive value stock right now.