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Is UFP Industries (UFPI) Stock Undervalued Right Now?
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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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
UFP Industries (UFPI - Free Report) is a stock many investors are watching right now. UFPI is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 7.47 right now. For comparison, its industry sports an average P/E of 13.22. Over the past year, UFPI's Forward P/E has been as high as 13.44 and as low as 7, with a median of 9.73.
We should also highlight that UFPI has a P/B ratio of 1.92. The P/B ratio pits a stock's market value against 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 2.67. Over the past 12 months, UFPI's P/B has been as high as 3.08 and as low as 1.81, with a median of 2.38.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. UFPI has a P/S ratio of 0.47. This compares to its industry's average P/S of 0.8.
Finally, investors should note that UFPI has a P/CF ratio of 6.01. 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 9.50. Within the past 12 months, UFPI's P/CF has been as high as 10.57 and as low as 5.66, with a median of 7.57.
Value investors will likely look at more than just these metrics, but the above data helps show that UFP Industries is likely undervalued currently. And when considering the strength of its earnings outlook, UFPI sticks out at as one of the market's strongest value stocks.
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Is UFP Industries (UFPI) Stock 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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
UFP Industries (UFPI - Free Report) is a stock many investors are watching right now. UFPI is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 7.47 right now. For comparison, its industry sports an average P/E of 13.22. Over the past year, UFPI's Forward P/E has been as high as 13.44 and as low as 7, with a median of 9.73.
We should also highlight that UFPI has a P/B ratio of 1.92. The P/B ratio pits a stock's market value against 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 2.67. Over the past 12 months, UFPI's P/B has been as high as 3.08 and as low as 1.81, with a median of 2.38.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. UFPI has a P/S ratio of 0.47. This compares to its industry's average P/S of 0.8.
Finally, investors should note that UFPI has a P/CF ratio of 6.01. 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 9.50. Within the past 12 months, UFPI's P/CF has been as high as 10.57 and as low as 5.66, with a median of 7.57.
Value investors will likely look at more than just these metrics, but the above data helps show that UFP Industries is likely undervalued currently. And when considering the strength of its earnings outlook, UFPI sticks out at as one of the market's strongest value stocks.