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Is Arcosa (ACA) Stock Undervalued Right Now?

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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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 stock to keep an eye on is Arcosa (ACA - Free Report) . ACA is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.

Another valuation metric that we should highlight is ACA's P/B ratio of 1.64. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. ACA's current P/B looks attractive when compared to its industry's average P/B of 3.96. Over the past year, ACA's P/B has been as high as 1.68 and as low as 1.16, with a median of 1.41.

Finally, investors will want to recognize that ACA has a P/CF ratio of 8.50. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 17.52. Within the past 12 months, ACA's P/CF has been as high as 12.70 and as low as 6.31, with a median of 8.37.

Investors could also keep in mind CRH (CRH - Free Report) , an Building Products - Miscellaneous stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.

Shares of CRH are currently trading at a forward earnings multiple of 12.18 and a PEG ratio of 0.75 compared to its industry's P/E and PEG ratios of 13.60 and 1.09, respectively.

Over the last 12 months, CRH's P/E has been as high as 14.56, as low as 9.20, with a median of 12.05, and its PEG ratio has been as high as 5.50, as low as 0.75, with a median of 3.55.

Furthermore, CRH holds a P/B ratio of 1.96 and its industry's price-to-book ratio is 3.96. CRH's P/B has been as high as 2.06, as low as 1.12, with a median of 1.58 over the past 12 months.

These are just a handful of the figures considered in Arcosa and CRH'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 ACA and CRH is an impressive value stock right now.


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