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Should Value Investors Buy Century Communities (CCS) Stock?
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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 company value investors might notice is Century Communities (CCS - Free Report) . CCS is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
Investors should also recognize that CCS has a P/B ratio of 1.16. 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 1.49. CCS's P/B has been as high as 1.16 and as low as 0.64, with a median of 0.87, 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. CCS has a P/S ratio of 0.56. This compares to its industry's average P/S of 0.77.
Finally, we should also recognize that CCS has a P/CF ratio of 5.90. 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. CCS's current P/CF looks attractive when compared to its industry's average P/CF of 6.87. Within the past 12 months, CCS's P/CF has been as high as 5.90 and as low as 2.18, with a median of 3.47.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Century Communities is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CCS feels like a great value stock at the moment.
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Should Value Investors Buy Century Communities (CCS) Stock?
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 company value investors might notice is Century Communities (CCS - Free Report) . CCS is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
Investors should also recognize that CCS has a P/B ratio of 1.16. 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 1.49. CCS's P/B has been as high as 1.16 and as low as 0.64, with a median of 0.87, 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. CCS has a P/S ratio of 0.56. This compares to its industry's average P/S of 0.77.
Finally, we should also recognize that CCS has a P/CF ratio of 5.90. 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. CCS's current P/CF looks attractive when compared to its industry's average P/CF of 6.87. Within the past 12 months, CCS's P/CF has been as high as 5.90 and as low as 2.18, with a median of 3.47.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Century Communities is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CCS feels like a great value stock at the moment.