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Is Green Brick Partners (GRBK) a Great Value Stock Right Now?

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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.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company to watch right now is Green Brick Partners (GRBK - Free Report) . GRBK is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. GRBK has a P/S ratio of 0.53. This compares to its industry's average P/S of 1.25.

Finally, we should also recognize that GRBK has a P/CF ratio of 6.48. 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 18.85. Within the past 12 months, GRBK's P/CF has been as high as 10.60 and as low as 4.85, with a median of 8.64.

Value investors will likely look at more than just these metrics, but the above data helps show that Green Brick Partners is likely undervalued currently. And when considering the strength of its earnings outlook, GRBK sticks out at as one of the market's strongest value stocks.


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