While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
BMC (BMCH - Free Report) is a stock many investors are watching right now. BMCH is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 14.47, which compares to its industry's average of 18.33. BMCH's Forward P/E has been as high as 14.47 and as low as 8.47, with a median of 11.49, all within the past year.
Finally, investors should note that BMCH has a P/CF ratio of 8.65. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 13.05. Over the past 52 weeks, BMCH's P/CF has been as high as 9.67 and as low as 5.62, with a median of 6.93.
Value investors will likely look at more than just these metrics, but the above data helps show that BMC is likely undervalued currently. And when considering the strength of its earnings outlook, BMCH sticks out at as one of the market's strongest value stocks.