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Should Value Investors Buy Landsea Homes (LSEA) Stock?
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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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is Landsea Homes (LSEA - Free Report) . LSEA is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 6.78, which compares to its industry's average of 8.08. LSEA's Forward P/E has been as high as 10.74 and as low as 1.72, with a median of 5.98, all within the past year.
Another notable valuation metric for LSEA is its P/B ratio of 0.50. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.32. Over the past 12 months, LSEA's P/B has been as high as 0.66 and as low as 0.27, with a median of 0.37.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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 0.27. This compares to its industry's average P/S of 0.65.
Finally, investors should note that LSEA has a P/CF ratio of 6.33. 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 6.65. Over the past 52 weeks, LSEA's P/CF has been as high as 8.29 and as low as 1.97, with a median of 3.47.
Value investors will likely look at more than just these metrics, but the above data helps show that Landsea Homes is likely undervalued currently. And when considering the strength of its earnings outlook, LSEA sticks out at as one of the market's strongest value stocks.
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Should Value Investors Buy Landsea Homes (LSEA) Stock?
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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is Landsea Homes (LSEA - Free Report) . LSEA is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 6.78, which compares to its industry's average of 8.08. LSEA's Forward P/E has been as high as 10.74 and as low as 1.72, with a median of 5.98, all within the past year.
Another notable valuation metric for LSEA is its P/B ratio of 0.50. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.32. Over the past 12 months, LSEA's P/B has been as high as 0.66 and as low as 0.27, with a median of 0.37.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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 0.27. This compares to its industry's average P/S of 0.65.
Finally, investors should note that LSEA has a P/CF ratio of 6.33. 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 6.65. Over the past 52 weeks, LSEA's P/CF has been as high as 8.29 and as low as 1.97, with a median of 3.47.
Value investors will likely look at more than just these metrics, but the above data helps show that Landsea Homes is likely undervalued currently. And when considering the strength of its earnings outlook, LSEA sticks out at as one of the market's strongest value stocks.