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Should Value Investors Buy Landsea Homes (LSEA) 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.
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.
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 Landsea Homes (LSEA - Free Report) . LSEA is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 10.06 right now. For comparison, its industry sports an average P/E of 10.82. Over the past year, LSEA's Forward P/E has been as high as 10.19 and as low as 1.72, with a median of 4.26.
Another notable valuation metric for LSEA is its P/B ratio of 0.58. 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 attractive against its industry's average P/B of 1.51. Within the past 52 weeks, LSEA's P/B has been as high as 0.59 and as low as 0.27, with a median of 0.36.
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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. LSEA has a P/S ratio of 0.3. This compares to its industry's average P/S of 0.81.
Finally, investors should note that LSEA has a P/CF ratio of 6.03. 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. This stock's P/CF looks attractive against its industry's average P/CF of 6.96. Within the past 12 months, LSEA's P/CF has been as high as 6.10 and as low as 1.97, with a median of 3.39.
Investors could also keep in mind Toll Brothers (TOL - Free Report) , an Building Products - Home Builders stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.
Toll Brothers is trading at a forward earnings multiple of 7.96 at the moment, with a PEG ratio of 0.72. This compares to its industry's average P/E of 10.82 and average PEG ratio of 0.86.
Over the last 12 months, TOL's P/E has been as high as 8.19, as low as 4.35, with a median of 6.90, and its PEG ratio has been as high as 0.90, as low as 0.62, with a median of 0.68.
Additionally, Toll Brothers has a P/B ratio of 1.44 while its industry's price-to-book ratio sits at 1.51. For TOL, this valuation metric has been as high as 1.44, as low as 0.78, with a median of 1.04 over the past year.
These are just a handful of the figures considered in Landsea Homes and Toll Brothers'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 LSEA and TOL is an impressive value stock right now.
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Should Value Investors Buy Landsea Homes (LSEA) 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.
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.
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 Landsea Homes (LSEA - Free Report) . LSEA is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 10.06 right now. For comparison, its industry sports an average P/E of 10.82. Over the past year, LSEA's Forward P/E has been as high as 10.19 and as low as 1.72, with a median of 4.26.
Another notable valuation metric for LSEA is its P/B ratio of 0.58. 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 attractive against its industry's average P/B of 1.51. Within the past 52 weeks, LSEA's P/B has been as high as 0.59 and as low as 0.27, with a median of 0.36.
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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. LSEA has a P/S ratio of 0.3. This compares to its industry's average P/S of 0.81.
Finally, investors should note that LSEA has a P/CF ratio of 6.03. 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. This stock's P/CF looks attractive against its industry's average P/CF of 6.96. Within the past 12 months, LSEA's P/CF has been as high as 6.10 and as low as 1.97, with a median of 3.39.
Investors could also keep in mind Toll Brothers (TOL - Free Report) , an Building Products - Home Builders stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.
Toll Brothers is trading at a forward earnings multiple of 7.96 at the moment, with a PEG ratio of 0.72. This compares to its industry's average P/E of 10.82 and average PEG ratio of 0.86.
Over the last 12 months, TOL's P/E has been as high as 8.19, as low as 4.35, with a median of 6.90, and its PEG ratio has been as high as 0.90, as low as 0.62, with a median of 0.68.
Additionally, Toll Brothers has a P/B ratio of 1.44 while its industry's price-to-book ratio sits at 1.51. For TOL, this valuation metric has been as high as 1.44, as low as 0.78, with a median of 1.04 over the past year.
These are just a handful of the figures considered in Landsea Homes and Toll Brothers'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 LSEA and TOL is an impressive value stock right now.