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Are Investors Undervaluing Meritage Homes (MTH) 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.
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.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is Meritage Homes (MTH - Free Report) . MTH is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 6.14, which compares to its industry's average of 7.69. Over the last 12 months, MTH's Forward P/E has been as high as 9.60 and as low as 3.24, with a median of 7.99.
Another notable valuation metric for MTH is its P/B ratio of 1.07. 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. MTH's current P/B looks attractive when compared to its industry's average P/B of 1.28. Over the past 12 months, MTH's P/B has been as high as 1.30 and as low as 0.66, with a median of 1.05.
Finally, investors should note that MTH has a P/CF ratio of 5.31. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. MTH's P/CF compares to its industry's average P/CF of 6.41. Over the past year, MTH's P/CF has been as high as 6.45 and as low as 2.47, with a median of 4.21.
If you're looking for another solid Building Products - Home Builders value stock, take a look at PulteGroup (PHM - Free Report) . PHM is a # 2 (Buy) stock with a Value score of A.
PulteGroup is trading at a forward earnings multiple of 6.40 at the moment, with a PEG ratio of 0.60. This compares to its industry's average P/E of 7.69 and average PEG ratio of 0.55.
PHM's price-to-earnings ratio has been as high as 9.08 and as low as 3.66, with a median of 7.32, while its PEG ratio has been as high as 4.10 and as low as 0.44, with a median of 0.55, all within the past year.
PulteGroup sports a P/B ratio of 1.69 as well; this compares to its industry's price-to-book ratio of 1.28. In the past 52 weeks, PHM's P/B has been as high as 1.94, as low as 1.02, with a median of 1.44.
These are just a handful of the figures considered in Meritage Homes and PulteGroup'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 MTH and PHM is an impressive value stock right now.
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Are Investors Undervaluing Meritage Homes (MTH) 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.
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.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is Meritage Homes (MTH - Free Report) . MTH is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 6.14, which compares to its industry's average of 7.69. Over the last 12 months, MTH's Forward P/E has been as high as 9.60 and as low as 3.24, with a median of 7.99.
Another notable valuation metric for MTH is its P/B ratio of 1.07. 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. MTH's current P/B looks attractive when compared to its industry's average P/B of 1.28. Over the past 12 months, MTH's P/B has been as high as 1.30 and as low as 0.66, with a median of 1.05.
Finally, investors should note that MTH has a P/CF ratio of 5.31. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. MTH's P/CF compares to its industry's average P/CF of 6.41. Over the past year, MTH's P/CF has been as high as 6.45 and as low as 2.47, with a median of 4.21.
If you're looking for another solid Building Products - Home Builders value stock, take a look at PulteGroup (PHM - Free Report) . PHM is a # 2 (Buy) stock with a Value score of A.
PulteGroup is trading at a forward earnings multiple of 6.40 at the moment, with a PEG ratio of 0.60. This compares to its industry's average P/E of 7.69 and average PEG ratio of 0.55.
PHM's price-to-earnings ratio has been as high as 9.08 and as low as 3.66, with a median of 7.32, while its PEG ratio has been as high as 4.10 and as low as 0.44, with a median of 0.55, all within the past year.
PulteGroup sports a P/B ratio of 1.69 as well; this compares to its industry's price-to-book ratio of 1.28. In the past 52 weeks, PHM's P/B has been as high as 1.94, as low as 1.02, with a median of 1.44.
These are just a handful of the figures considered in Meritage Homes and PulteGroup'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 MTH and PHM is an impressive value stock right now.