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Century Communities, Inc. (CCS) Hit a 52 Week High, Can the Run Continue?
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Shares of Century Communities (CCS - Free Report) have been strong performers lately, with the stock up 11.8% over the past month. The stock hit a new 52-week high of $97.92 in the previous session. Century Communities has gained 5.9% since the start of the year compared to the 15.7% move for the Zacks Construction sector and the 13.3% return for the Zacks Building Products - Home Builders industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on January 31, 2024, Century Communities reported EPS of $2.93 versus consensus estimate of $2.27 while it beat the consensus revenue estimate by 31.63%.
For the current fiscal year, Century Communities is expected to post earnings of $10.06 per share on $4.1 billion in revenues. This represents a 24.35% change in EPS on a 11.06% change in revenues. For the next fiscal year, the company is expected to earn $11.58 per share on $4.55 billion in revenues. This represents a year-over-year change of 15.05% and 11.03%, respectively.
Valuation Metrics
Century Communities may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Century Communities has a Value Score of B. The stock's Growth and Momentum Scores are B and F, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 9.6X current fiscal year EPS estimates, which is not in-line with the peer industry average of 10.2X. On a trailing cash flow basis, the stock currently trades at 11.1X versus its peer group's average of 9.5X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Century Communities currently has a Zacks Rank of #1 (Strong Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Century Communities fits the bill. Thus, it seems as though Century Communities shares could have a bit more room to run in the near term.
How Does CCS Stack Up to the Competition?
Shares of CCS have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Dream Finders Homes, Inc. (DFH - Free Report) . DFH has a Zacks Rank of # 1 (Strong Buy) and a Value Score of B, a Growth Score of A, and a Momentum Score of F.
Earnings were strong last quarter. Dream Finders Homes, Inc. beat our consensus estimate by 49.25%, and for the current fiscal year, DFH is expected to post earnings of $3.14 per share on revenue of $4.34 billion.
Shares of Dream Finders Homes, Inc. have gained 11.8% over the past month, and currently trade at a forward P/E of 13.93X and a P/CF of 12.98X.
The Building Products - Home Builders industry is in the top 20% of all the industries we have in our universe, so it looks like there are some nice tailwinds for CCS and DFH, even beyond their own solid fundamental situation.
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Century Communities, Inc. (CCS) Hit a 52 Week High, Can the Run Continue?
Shares of Century Communities (CCS - Free Report) have been strong performers lately, with the stock up 11.8% over the past month. The stock hit a new 52-week high of $97.92 in the previous session. Century Communities has gained 5.9% since the start of the year compared to the 15.7% move for the Zacks Construction sector and the 13.3% return for the Zacks Building Products - Home Builders industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on January 31, 2024, Century Communities reported EPS of $2.93 versus consensus estimate of $2.27 while it beat the consensus revenue estimate by 31.63%.
For the current fiscal year, Century Communities is expected to post earnings of $10.06 per share on $4.1 billion in revenues. This represents a 24.35% change in EPS on a 11.06% change in revenues. For the next fiscal year, the company is expected to earn $11.58 per share on $4.55 billion in revenues. This represents a year-over-year change of 15.05% and 11.03%, respectively.
Valuation Metrics
Century Communities may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Century Communities has a Value Score of B. The stock's Growth and Momentum Scores are B and F, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 9.6X current fiscal year EPS estimates, which is not in-line with the peer industry average of 10.2X. On a trailing cash flow basis, the stock currently trades at 11.1X versus its peer group's average of 9.5X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Century Communities currently has a Zacks Rank of #1 (Strong Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Century Communities fits the bill. Thus, it seems as though Century Communities shares could have a bit more room to run in the near term.
How Does CCS Stack Up to the Competition?
Shares of CCS have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Dream Finders Homes, Inc. (DFH - Free Report) . DFH has a Zacks Rank of # 1 (Strong Buy) and a Value Score of B, a Growth Score of A, and a Momentum Score of F.
Earnings were strong last quarter. Dream Finders Homes, Inc. beat our consensus estimate by 49.25%, and for the current fiscal year, DFH is expected to post earnings of $3.14 per share on revenue of $4.34 billion.
Shares of Dream Finders Homes, Inc. have gained 11.8% over the past month, and currently trade at a forward P/E of 13.93X and a P/CF of 12.98X.
The Building Products - Home Builders industry is in the top 20% of all the industries we have in our universe, so it looks like there are some nice tailwinds for CCS and DFH, even beyond their own solid fundamental situation.