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CX vs. VMC: Which Stock Should Value Investors Buy Now?
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Investors interested in stocks from the Building Products - Concrete and Aggregates sector have probably already heard of Cemex (CX - Free Report) and Vulcan Materials (VMC - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Cemex is sporting a Zacks Rank of #2 (Buy), while Vulcan Materials has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that CX likely has seen a stronger improvement to its earnings outlook than VMC has recently. However, value investors will care about much more than just this.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
CX currently has a forward P/E ratio of 12.04, while VMC has a forward P/E of 34.81. We also note that CX has a PEG ratio of 1.27. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. VMC currently has a PEG ratio of 2.40.
Another notable valuation metric for CX is its P/B ratio of 1.23. 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. By comparison, VMC has a P/B of 4.43.
Based on these metrics and many more, CX holds a Value grade of B, while VMC has a Value grade of D.
CX has seen stronger estimate revision activity and sports more attractive valuation metrics than VMC, so it seems like value investors will conclude that CX is the superior option right now.
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CX vs. VMC: Which Stock Should Value Investors Buy Now?
Investors interested in stocks from the Building Products - Concrete and Aggregates sector have probably already heard of Cemex (CX - Free Report) and Vulcan Materials (VMC - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Cemex is sporting a Zacks Rank of #2 (Buy), while Vulcan Materials has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that CX likely has seen a stronger improvement to its earnings outlook than VMC has recently. However, value investors will care about much more than just this.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
CX currently has a forward P/E ratio of 12.04, while VMC has a forward P/E of 34.81. We also note that CX has a PEG ratio of 1.27. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. VMC currently has a PEG ratio of 2.40.
Another notable valuation metric for CX is its P/B ratio of 1.23. 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. By comparison, VMC has a P/B of 4.43.
Based on these metrics and many more, CX holds a Value grade of B, while VMC has a Value grade of D.
CX has seen stronger estimate revision activity and sports more attractive valuation metrics than VMC, so it seems like value investors will conclude that CX is the superior option right now.