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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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 is a stock many investors are watching right now. BMCH is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 17.81, while its industry has an average P/E of 20.69. BMCH's Forward P/E has been as high as 22.37 and as low as 7.19, with a median of 13.95, all within the past year.

Finally, our model also underscores that BMCH has a P/CF ratio of 9.07. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 14.42. Over the past 52 weeks, BMCH's P/CF has been as high as 11.58 and as low as 5.63, with a median of 9.04.

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.

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