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Are Investors Undervaluing Builders FirstSource (BLDR) 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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 Builders FirstSource (BLDR - Free Report) . BLDR is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with P/E ratio of 12.54 right now. For comparison, its industry sports an average P/E of 17.62. Over the last 12 months, BLDR's Forward P/E has been as high as 14.88 and as low as 3.62, with a median of 7.41.
Finally, investors will want to recognize that BLDR has a P/CF ratio of 5.87. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. BLDR's P/CF compares to its industry's average P/CF of 12.87. BLDR's P/CF has been as high as 5.87 and as low as 2.57, with a median of 3.45, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Builders FirstSource is likely undervalued currently. And when considering the strength of its earnings outlook, BLDR sticks out at as one of the market's strongest value stocks.
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Are Investors Undervaluing Builders FirstSource (BLDR) 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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 Builders FirstSource (BLDR - Free Report) . BLDR is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with P/E ratio of 12.54 right now. For comparison, its industry sports an average P/E of 17.62. Over the last 12 months, BLDR's Forward P/E has been as high as 14.88 and as low as 3.62, with a median of 7.41.
Finally, investors will want to recognize that BLDR has a P/CF ratio of 5.87. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. BLDR's P/CF compares to its industry's average P/CF of 12.87. BLDR's P/CF has been as high as 5.87 and as low as 2.57, with a median of 3.45, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Builders FirstSource is likely undervalued currently. And when considering the strength of its earnings outlook, BLDR sticks out at as one of the market's strongest value stocks.