Back to top

Image: Bigstock

Should Value Investors Buy U.S. Concrete (USCR) Stock?

Read MoreHide Full Article

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

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.

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.

U.S. Concrete (USCR - Free Report) is a stock many investors are watching right now. USCR is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 23.10, which compares to its industry's average of 23.47. Over the last 12 months, USCR's Forward P/E has been as high as 62.48 and as low as 3.52, with a median of 13.13.

USCR is also sporting a PEG ratio of 1.20. 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. USCR's PEG compares to its industry's average PEG of 1.53. Over the past 52 weeks, USCR's PEG has been as high as 1.39 and as low as 1.14, with a median of 1.29.

Another notable valuation metric for USCR is its P/B ratio of 1.29. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. USCR's current P/B looks attractive when compared to its industry's average P/B of 3.02. USCR's P/B has been as high as 2.59 and as low as 0.44, with a median of 1.86, over the past year.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. USCR has a P/S ratio of 0.29. This compares to its industry's average P/S of 0.83.

These figures are just a handful of the metrics value investors tend to look at, but they help show that U.S. Concrete is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, USCR feels like a great value stock at the moment.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


U S Concrete, Inc. (USCR) - free report >>

Published in