We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Are These Construction Stocks Undervalued Right Now?
Read MoreHide Full Article
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 company value investors might notice is KB Home (KBH - Free Report) . KBH is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 3.87. This compares to its industry's average Forward P/E of 6.03. KBH's Forward P/E has been as high as 9.04 and as low as 3.87, with a median of 6.28, all within the past year.
Investors will also notice that KBH has a PEG ratio of 0.23. 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. KBH's PEG compares to its industry's average PEG of 0.43. Over the past 52 weeks, KBH's PEG has been as high as 0.44 and as low as 0.14, with a median of 0.37.
Another valuation metric that we should highlight is KBH's P/B ratio of 1.16. The P/B is a method of comparing a stock's market value to 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 1.40. KBH's P/B has been as high as 1.71 and as low as 1.15, with a median of 1.34, over the past year.
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. KBH has a P/S ratio of 0.63. This compares to its industry's average P/S of 0.69.
Finally, investors should note that KBH has a P/CF ratio of 6.08. 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. KBH's P/CF compares to its industry's average P/CF of 7.77. Within the past 12 months, KBH's P/CF has been as high as 13.29 and as low as 6.06, with a median of 8.67.
Toll Brothers (TOL - Free Report) may be another strong Building Products - Home Builders stock to add to your shortlist. TOL is a # 1 (Strong Buy) stock with a Value grade of A.
Toll Brothers is currently trading with a Forward P/E ratio of 5.35 while its PEG ratio sits at 0.20. Both of the company's metrics compare favorably to its industry's average P/E of 6.03 and average PEG ratio of 0.43.
Over the last 12 months, TOL's P/E has been as high as 11.65, as low as 5.35, with a median of 7.84, and its PEG ratio has been as high as 0.75, as low as 0.18, with a median of 0.57.
Furthermore, Toll Brothers holds a P/B ratio of 1.25 and its industry's price-to-book ratio is 1.40. TOL's P/B has been as high as 1.70, as low as 1.25, with a median of 1.46 over the past 12 months.
These are only a few of the key metrics included in KB Home and Toll Brothers strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, KBH and TOL look like an impressive value stock at the moment.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Are These Construction Stocks Undervalued Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 company value investors might notice is KB Home (KBH - Free Report) . KBH is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 3.87. This compares to its industry's average Forward P/E of 6.03. KBH's Forward P/E has been as high as 9.04 and as low as 3.87, with a median of 6.28, all within the past year.
Investors will also notice that KBH has a PEG ratio of 0.23. 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. KBH's PEG compares to its industry's average PEG of 0.43. Over the past 52 weeks, KBH's PEG has been as high as 0.44 and as low as 0.14, with a median of 0.37.
Another valuation metric that we should highlight is KBH's P/B ratio of 1.16. The P/B is a method of comparing a stock's market value to 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 1.40. KBH's P/B has been as high as 1.71 and as low as 1.15, with a median of 1.34, over the past year.
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. KBH has a P/S ratio of 0.63. This compares to its industry's average P/S of 0.69.
Finally, investors should note that KBH has a P/CF ratio of 6.08. 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. KBH's P/CF compares to its industry's average P/CF of 7.77. Within the past 12 months, KBH's P/CF has been as high as 13.29 and as low as 6.06, with a median of 8.67.
Toll Brothers (TOL - Free Report) may be another strong Building Products - Home Builders stock to add to your shortlist. TOL is a # 1 (Strong Buy) stock with a Value grade of A.
Toll Brothers is currently trading with a Forward P/E ratio of 5.35 while its PEG ratio sits at 0.20. Both of the company's metrics compare favorably to its industry's average P/E of 6.03 and average PEG ratio of 0.43.
Over the last 12 months, TOL's P/E has been as high as 11.65, as low as 5.35, with a median of 7.84, and its PEG ratio has been as high as 0.75, as low as 0.18, with a median of 0.57.
Furthermore, Toll Brothers holds a P/B ratio of 1.25 and its industry's price-to-book ratio is 1.40. TOL's P/B has been as high as 1.70, as low as 1.25, with a median of 1.46 over the past 12 months.
These are only a few of the key metrics included in KB Home and Toll Brothers strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, KBH and TOL look like an impressive value stock at the moment.