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Should Value Investors Buy Century Communities (CCS) Stock?
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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.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 company value investors might notice is Century Communities (CCS - Free Report) . CCS is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock holds a P/E ratio of 9.08, while its industry has an average P/E of 9.22. Over the past year, CCS's Forward P/E has been as high as 11.73 and as low as 2.50, with a median of 8.73.
Investors should also recognize that CCS has a P/B ratio of 1.07. 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 1.41. Over the past 12 months, CCS's P/B has been as high as 1.13 and as low as 0.64, with a median of 0.88.
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. CCS has a P/S ratio of 0.61. This compares to its industry's average P/S of 0.77.
Investors could also keep in mind Landsea Homes (LSEA - Free Report) , an Building Products - Home Builders stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.
Furthermore, Landsea Homes holds a P/B ratio of 0.64 and its industry's price-to-book ratio is 1.41. LSEA's P/B has been as high as 0.66, as low as 0.27, with a median of 0.36 over the past 12 months.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Century Communities and Landsea Homes are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CCS and LSEA feels like a great value stock at the moment.
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Should Value Investors Buy Century Communities (CCS) 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.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 company value investors might notice is Century Communities (CCS - Free Report) . CCS is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock holds a P/E ratio of 9.08, while its industry has an average P/E of 9.22. Over the past year, CCS's Forward P/E has been as high as 11.73 and as low as 2.50, with a median of 8.73.
Investors should also recognize that CCS has a P/B ratio of 1.07. 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 1.41. Over the past 12 months, CCS's P/B has been as high as 1.13 and as low as 0.64, with a median of 0.88.
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. CCS has a P/S ratio of 0.61. This compares to its industry's average P/S of 0.77.
Investors could also keep in mind Landsea Homes (LSEA - Free Report) , an Building Products - Home Builders stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.
Furthermore, Landsea Homes holds a P/B ratio of 0.64 and its industry's price-to-book ratio is 1.41. LSEA's P/B has been as high as 0.66, as low as 0.27, with a median of 0.36 over the past 12 months.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Century Communities and Landsea Homes are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CCS and LSEA feels like a great value stock at the moment.