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Should Value Investors Buy Summit Materials (SUM) Stock?
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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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Summit Materials (SUM - Free Report) . SUM is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 20.49, which compares to its industry's average of 25.77. Over the last 12 months, SUM's Forward P/E has been as high as 55.15 and as low as 10.03, with a median of 26.05.
Investors will also notice that SUM has a PEG ratio of 1.95. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. SUM's industry currently sports an average PEG of 3.81.
We should also highlight that SUM has a P/B ratio of 1.24. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. SUM's current P/B looks attractive when compared to its industry's average P/B of 2.59. Within the past 52 weeks, SUM's P/B has been as high as 2.02 and as low as 0.67, with a median of 1.70.
These are just a handful of the figures considered in Summit Materials's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that SUM is an impressive value stock right now.
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Should Value Investors Buy Summit Materials (SUM) Stock?
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Summit Materials (SUM - Free Report) . SUM is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 20.49, which compares to its industry's average of 25.77. Over the last 12 months, SUM's Forward P/E has been as high as 55.15 and as low as 10.03, with a median of 26.05.
Investors will also notice that SUM has a PEG ratio of 1.95. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. SUM's industry currently sports an average PEG of 3.81.
We should also highlight that SUM has a P/B ratio of 1.24. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. SUM's current P/B looks attractive when compared to its industry's average P/B of 2.59. Within the past 52 weeks, SUM's P/B has been as high as 2.02 and as low as 0.67, with a median of 1.70.
These are just a handful of the figures considered in Summit Materials's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that SUM is an impressive value stock right now.