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CX vs. VMC: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Building Products - Concrete and Aggregates sector have probably already heard of Cemex (CX - Free Report) and Vulcan Materials (VMC - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, both Cemex and Vulcan Materials are sporting a Zacks Rank of # 2 (Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is just one piece of the puzzle for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
CX currently has a forward P/E ratio of 9.83, while VMC has a forward P/E of 33.45. We also note that CX has a PEG ratio of 0.63. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. VMC currently has a PEG ratio of 1.56.
Another notable valuation metric for CX is its P/B ratio of 0.92. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, VMC has a P/B of 4.11.
Based on these metrics and many more, CX holds a Value grade of A, while VMC has a Value grade of C.
Both CX and VMC are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that CX is the superior value option right now.
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CX vs. VMC: Which Stock Is the Better Value Option?
Investors interested in stocks from the Building Products - Concrete and Aggregates sector have probably already heard of Cemex (CX - Free Report) and Vulcan Materials (VMC - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, both Cemex and Vulcan Materials are sporting a Zacks Rank of # 2 (Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is just one piece of the puzzle for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
CX currently has a forward P/E ratio of 9.83, while VMC has a forward P/E of 33.45. We also note that CX has a PEG ratio of 0.63. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. VMC currently has a PEG ratio of 1.56.
Another notable valuation metric for CX is its P/B ratio of 0.92. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, VMC has a P/B of 4.11.
Based on these metrics and many more, CX holds a Value grade of A, while VMC has a Value grade of C.
Both CX and VMC are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that CX is the superior value option right now.