Investors interested in stocks from the Building Products - Miscellaneous sector have probably already heard of Continental Building Products and PGT . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Continental Building Products and PGT are both sporting a Zacks Rank of # 1 (Strong Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is just one piece of the puzzle for value investors.
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 Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
CBPX currently has a forward P/E ratio of 17.93, while PGTI has a forward P/E of 18.46. We also note that CBPX has a PEG ratio of 0.60. 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. PGTI currently has a PEG ratio of 0.96.
Another notable valuation metric for CBPX is its P/B ratio of 4.07. 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, PGTI has a P/B of 4.95.
These are just a few of the metrics contributing to CBPX's Value grade of B and PGTI's Value grade of C.
Both CBPX and PGTI are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that CBPX is the superior value option right now.
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CBPX vs. PGTI: Which Stock Should Value Investors Buy Now?
Investors interested in stocks from the Building Products - Miscellaneous sector have probably already heard of Continental Building Products and PGT . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Continental Building Products and PGT are both sporting a Zacks Rank of # 1 (Strong Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is just one piece of the puzzle for value investors.
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 Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
CBPX currently has a forward P/E ratio of 17.93, while PGTI has a forward P/E of 18.46. We also note that CBPX has a PEG ratio of 0.60. 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. PGTI currently has a PEG ratio of 0.96.
Another notable valuation metric for CBPX is its P/B ratio of 4.07. 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, PGTI has a P/B of 4.95.
These are just a few of the metrics contributing to CBPX's Value grade of B and PGTI's Value grade of C.
Both CBPX and PGTI are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that CBPX is the superior value option right now.