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Is BMC (BMCH) Stock Undervalued Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One stock to keep an eye on is BMC . BMCH is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 13.71, which compares to its industry's average of 21.17. Over the past 52 weeks, BMCH's Forward P/E has been as high as 15.38 and as low as 10.64, with a median of 13.45.

Finally, our model also underscores that BMCH has a P/CF ratio of 10.12. 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 14.42. Over the past 52 weeks, BMCH's P/CF has been as high as 11.19 and as low as 6.13, with a median of 8.89.

These are only a few of the key metrics included in BMC's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, BMCH looks like an impressive value stock at the moment.

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