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.
HCMLY vs. IBP: Which Stock Should Value Investors Buy Now?
Read MoreHide Full Article
Investors interested in stocks from the Building Products - Miscellaneous sector have probably already heard of Holcim Ltd Unsponsored ADR (HCMLY - Free Report) and Installed Building Products (IBP - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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.
Holcim Ltd Unsponsored ADR has a Zacks Rank of #2 (Buy), while Installed Building Products has a Zacks Rank of #4 (Sell) right now. Investors should feel comfortable knowing that HCMLY likely has seen a stronger improvement to its earnings outlook than IBP has recently. But this is just one piece of the puzzle for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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.
HCMLY currently has a forward P/E ratio of 18.12, while IBP has a forward P/E of 23.67. We also note that HCMLY has a PEG ratio of 0.59. 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. IBP currently has a PEG ratio of 3.54.
Another notable valuation metric for HCMLY is its P/B ratio of 2.52. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, IBP has a P/B of 10.23.
These metrics, and several others, help HCMLY earn a Value grade of B, while IBP has been given a Value grade of D.
HCMLY sticks out from IBP in both our Zacks Rank and Style Scores models, so value investors will likely feel that HCMLY is the better option right now.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
HCMLY vs. IBP: Which Stock Should Value Investors Buy Now?
Investors interested in stocks from the Building Products - Miscellaneous sector have probably already heard of Holcim Ltd Unsponsored ADR (HCMLY - Free Report) and Installed Building Products (IBP - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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.
Holcim Ltd Unsponsored ADR has a Zacks Rank of #2 (Buy), while Installed Building Products has a Zacks Rank of #4 (Sell) right now. Investors should feel comfortable knowing that HCMLY likely has seen a stronger improvement to its earnings outlook than IBP has recently. But this is just one piece of the puzzle for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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.
HCMLY currently has a forward P/E ratio of 18.12, while IBP has a forward P/E of 23.67. We also note that HCMLY has a PEG ratio of 0.59. 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. IBP currently has a PEG ratio of 3.54.
Another notable valuation metric for HCMLY is its P/B ratio of 2.52. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, IBP has a P/B of 10.23.
These metrics, and several others, help HCMLY earn a Value grade of B, while IBP has been given a Value grade of D.
HCMLY sticks out from IBP in both our Zacks Rank and Style Scores models, so value investors will likely feel that HCMLY is the better option right now.