We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
BECN vs. HD: Which Stock Is the Better Value Option?
Read MoreHide Full Article
Investors looking for stocks in the Building Products - Retail sector might want to consider either Beacon Roofing Supply or Home Depot (HD - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Beacon Roofing Supply has a Zacks Rank of #1 (Strong Buy), while Home Depot has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that BECN likely has seen a stronger improvement to its earnings outlook than HD has recently. However, value investors will care about much more than just this.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
BECN currently has a forward P/E ratio of 11.82, while HD has a forward P/E of 23.20. We also note that BECN has a PEG ratio of 1.29. 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. HD currently has a PEG ratio of 2.60.
Another notable valuation metric for BECN is its P/B ratio of 3.20. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, HD has a P/B of 243.12.
These metrics, and several others, help BECN earn a Value grade of A, while HD has been given a Value grade of C.
BECN stands above HD thanks to its solid earnings outlook, and based on these valuation figures, we also feel that BECN is the superior value option right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
BECN vs. HD: Which Stock Is the Better Value Option?
Investors looking for stocks in the Building Products - Retail sector might want to consider either Beacon Roofing Supply or Home Depot (HD - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Beacon Roofing Supply has a Zacks Rank of #1 (Strong Buy), while Home Depot has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that BECN likely has seen a stronger improvement to its earnings outlook than HD has recently. However, value investors will care about much more than just this.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
BECN currently has a forward P/E ratio of 11.82, while HD has a forward P/E of 23.20. We also note that BECN has a PEG ratio of 1.29. 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. HD currently has a PEG ratio of 2.60.
Another notable valuation metric for BECN is its P/B ratio of 3.20. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, HD has a P/B of 243.12.
These metrics, and several others, help BECN earn a Value grade of A, while HD has been given a Value grade of C.
BECN stands above HD thanks to its solid earnings outlook, and based on these valuation figures, we also feel that BECN is the superior value option right now.