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Are Investors Undervaluing Century Communities (CCS) 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.
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.
One company to watch right now is Century Communities (CCS - Free Report) . CCS is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 4.92, while its industry has an average P/E of 7.93. Over the past 52 weeks, CCS's Forward P/E has been as high as 9.59 and as low as 4.80, with a median of 7.29.
We should also highlight that CCS has a P/B ratio of 1.60. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.65. CCS's P/B has been as high as 2.01 and as low as 1.05, with a median of 1.38, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. CCS has a P/S ratio of 0.59. This compares to its industry's average P/S of 0.84.
Finally, investors should note that CCS has a P/CF ratio of 6.43. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. CCS's current P/CF looks attractive when compared to its industry's average P/CF of 8.65. Over the past year, CCS's P/CF has been as high as 10.01 and as low as 5.34, with a median of 8.05.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Century Communities is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CCS feels like a great value stock at the moment.
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Are Investors Undervaluing Century Communities (CCS) Right Now?
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.
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.
One company to watch right now is Century Communities (CCS - Free Report) . CCS is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 4.92, while its industry has an average P/E of 7.93. Over the past 52 weeks, CCS's Forward P/E has been as high as 9.59 and as low as 4.80, with a median of 7.29.
We should also highlight that CCS has a P/B ratio of 1.60. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.65. CCS's P/B has been as high as 2.01 and as low as 1.05, with a median of 1.38, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. CCS has a P/S ratio of 0.59. This compares to its industry's average P/S of 0.84.
Finally, investors should note that CCS has a P/CF ratio of 6.43. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. CCS's current P/CF looks attractive when compared to its industry's average P/CF of 8.65. Over the past year, CCS's P/CF has been as high as 10.01 and as low as 5.34, with a median of 8.05.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Century Communities is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CCS feels like a great value stock at the moment.