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 Investors Undervaluing These Construction Stocks Right Now?
Read MoreHide Full Article
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.
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 Toll Brothers (TOL - Free Report) . TOL is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 5.22 right now. For comparison, its industry sports an average P/E of 5.36. Over the last 12 months, TOL's Forward P/E has been as high as 11.50 and as low as 5.22, with a median of 7.65.
We also note that TOL holds a PEG ratio of 0.20. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. TOL's industry currently sports an average PEG of 0.45. Over the past 52 weeks, TOL's PEG has been as high as 0.74 and as low as 0.18, with a median of 0.28.
Tri Pointe Homes (TPH - Free Report) may be another strong Building Products - Home Builders stock to add to your shortlist. TPH is a # 1 (Strong Buy) stock with a Value grade of A.
Tri Pointe Homes also has a P/B ratio of 0.98 compared to its industry's price-to-book ratio of 1.07. Over the past year, its P/B ratio has been as high as 1.36, as low as 0.97, with a median of 1.16.
These are just a handful of the figures considered in Toll Brothers and Tri Pointe Homes'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 TOL and TPH is an impressive value stock right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Are Investors Undervaluing These Construction Stocks 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.
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 Toll Brothers (TOL - Free Report) . TOL is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 5.22 right now. For comparison, its industry sports an average P/E of 5.36. Over the last 12 months, TOL's Forward P/E has been as high as 11.50 and as low as 5.22, with a median of 7.65.
We also note that TOL holds a PEG ratio of 0.20. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. TOL's industry currently sports an average PEG of 0.45. Over the past 52 weeks, TOL's PEG has been as high as 0.74 and as low as 0.18, with a median of 0.28.
Tri Pointe Homes (TPH - Free Report) may be another strong Building Products - Home Builders stock to add to your shortlist. TPH is a # 1 (Strong Buy) stock with a Value grade of A.
Tri Pointe Homes also has a P/B ratio of 0.98 compared to its industry's price-to-book ratio of 1.07. Over the past year, its P/B ratio has been as high as 1.36, as low as 0.97, with a median of 1.16.
These are just a handful of the figures considered in Toll Brothers and Tri Pointe Homes'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 TOL and TPH is an impressive value stock right now.