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Are Investors Undervaluing TopBuild (BLD) Right Now?

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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.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 TopBuild (BLD - Free Report) . BLD is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 12.56, while its industry has an average P/E of 13.02. Over the past year, BLD's Forward P/E has been as high as 17.76 and as low as 9.11, with a median of 13.27.

We should also highlight that BLD has a P/B ratio of 3.48. 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. This company's current P/B looks solid when compared to its industry's average P/B of 3.83. BLD's P/B has been as high as 4.28 and as low as 2.47, with a median of 3.28, over the past year.

Finally, we should also recognize that BLD has a P/CF ratio of 10.68. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 16.62. Within the past 12 months, BLD's P/CF has been as high as 13.16 and as low as 7.30, with a median of 9.39.

Another great Building Products - Miscellaneous stock you could consider is CRH (CRH - Free Report) , which is a # 1 (Strong Buy) stock with a Value Score of A.

CRH is trading at a forward earnings multiple of 11.63 at the moment, with a PEG ratio of 0.61. This compares to its industry's average P/E of 13.02 and average PEG ratio of 1.03.

Over the past year, CRH's P/E has been as high as 14.56, as low as 9.29, with a median of 12.11; its PEG ratio has been as high as 5.50, as low as 0.61, with a median of 2.52 during the same time period.

CRH also has a P/B ratio of 1.90 compared to its industry's price-to-book ratio of 3.83. Over the past year, its P/B ratio has been as high as 2.06, as low as 1.12, with a median of 1.61.

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


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