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ROCK or ROAD: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Building Products - Miscellaneous sector have probably already heard of Gibraltar Industries (ROCK - Free Report) and Construction Partners (ROAD - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive 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, Gibraltar Industries is sporting a Zacks Rank of #2 (Buy), while Construction Partners has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that ROCK likely has seen a stronger improvement to its earnings outlook than ROAD has recently. But this is just one factor that value investors are interested in.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether 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.
ROCK currently has a forward P/E ratio of 10.92, while ROAD has a forward P/E of 41.01. We also note that ROCK has a PEG ratio of 0.73. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ROAD currently has a PEG ratio of 1.08.
Another notable valuation metric for ROCK is its P/B ratio of 1.58. 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, ROAD has a P/B of 6.98.
Based on these metrics and many more, ROCK holds a Value grade of A, while ROAD has a Value grade of C.
ROCK stands above ROAD thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ROCK is the superior value option right now.
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ROCK or ROAD: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Building Products - Miscellaneous sector have probably already heard of Gibraltar Industries (ROCK - Free Report) and Construction Partners (ROAD - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive 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, Gibraltar Industries is sporting a Zacks Rank of #2 (Buy), while Construction Partners has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that ROCK likely has seen a stronger improvement to its earnings outlook than ROAD has recently. But this is just one factor that value investors are interested in.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether 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.
ROCK currently has a forward P/E ratio of 10.92, while ROAD has a forward P/E of 41.01. We also note that ROCK has a PEG ratio of 0.73. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ROAD currently has a PEG ratio of 1.08.
Another notable valuation metric for ROCK is its P/B ratio of 1.58. 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, ROAD has a P/B of 6.98.
Based on these metrics and many more, ROCK holds a Value grade of A, while ROAD has a Value grade of C.
ROCK stands above ROAD thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ROCK is the superior value option right now.