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Is Builders FirstSource (BLDR) a Great Value Stock 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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

Builders FirstSource (BLDR - Free Report) is a stock many investors are watching right now. BLDR is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 12.77, while its industry has an average P/E of 18.47. BLDR's Forward P/E has been as high as 14.88 and as low as 3.62, with a median of 11.35, all within the past year.

Finally, we should also recognize that BLDR has a P/CF ratio of 8.07. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 14.02. Over the past year, BLDR's P/CF has been as high as 8.09 and as low as 2.57, with a median of 3.66.

If you're looking for another solid Building Products - Retail value stock, take a look at Tecnoglass (TGLS - Free Report) . TGLS is a # 2 (Buy) stock with a Value score of A.

Tecnoglass also has a P/B ratio of 4.74 compared to its industry's price-to-book ratio of -59.61. Over the past year, its P/B ratio has been as high as 6.42, as low as 2.98, with a median of 4.73.

These are only a few of the key metrics included in Builders FirstSource and Tecnoglass strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, BLDR and TGLS look like an impressive value stock at the moment.


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