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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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
KB Home (KBH - Free Report) is a stock many investors are watching right now. KBH is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 6.07, which compares to its industry's average of 7.35. Over the past 52 weeks, KBH's Forward P/E has been as high as 9.71 and as low as 3.34, with a median of 7.71.
Investors should also recognize that KBH has a P/B ratio of 0.93. 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 1.25. Over the past 12 months, KBH's P/B has been as high as 1.17 and as low as 0.65, with a median of 0.90.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. KBH has a P/S ratio of 0.53. This compares to its industry's average P/S of 0.63.
Finally, investors should note that KBH has a P/CF ratio of 5.26. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 6.26. Over the past 52 weeks, KBH's P/CF has been as high as 6.18 and as low as 2.91, with a median of 4.06.
PulteGroup (PHM - Free Report) may be another strong Building Products - Home Builders stock to add to your shortlist. PHM is a # 2 (Buy) stock with a Value grade of A.
PulteGroup is trading at a forward earnings multiple of 6.15 at the moment, with a PEG ratio of 0.58. This compares to its industry's average P/E of 7.35 and average PEG ratio of 0.52.
Over the last 12 months, PHM's P/E has been as high as 9.08, as low as 3.66, with a median of 7.32, and its PEG ratio has been as high as 4.10, as low as 0.44, with a median of 0.55.
Furthermore, PulteGroup holds a P/B ratio of 1.63 and its industry's price-to-book ratio is 1.25. PHM's P/B has been as high as 1.94, as low as 1.02, with a median of 1.45 over the past 12 months.
These are only a few of the key metrics included in KB Home and PulteGroup strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, KBH and PHM look like an impressive value stock at the moment.
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Should Value Investors Buy KB Home (KBH) 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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
KB Home (KBH - Free Report) is a stock many investors are watching right now. KBH is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 6.07, which compares to its industry's average of 7.35. Over the past 52 weeks, KBH's Forward P/E has been as high as 9.71 and as low as 3.34, with a median of 7.71.
Investors should also recognize that KBH has a P/B ratio of 0.93. 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 1.25. Over the past 12 months, KBH's P/B has been as high as 1.17 and as low as 0.65, with a median of 0.90.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. KBH has a P/S ratio of 0.53. This compares to its industry's average P/S of 0.63.
Finally, investors should note that KBH has a P/CF ratio of 5.26. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 6.26. Over the past 52 weeks, KBH's P/CF has been as high as 6.18 and as low as 2.91, with a median of 4.06.
PulteGroup (PHM - Free Report) may be another strong Building Products - Home Builders stock to add to your shortlist. PHM is a # 2 (Buy) stock with a Value grade of A.
PulteGroup is trading at a forward earnings multiple of 6.15 at the moment, with a PEG ratio of 0.58. This compares to its industry's average P/E of 7.35 and average PEG ratio of 0.52.
Over the last 12 months, PHM's P/E has been as high as 9.08, as low as 3.66, with a median of 7.32, and its PEG ratio has been as high as 4.10, as low as 0.44, with a median of 0.55.
Furthermore, PulteGroup holds a P/B ratio of 1.63 and its industry's price-to-book ratio is 1.25. PHM's P/B has been as high as 1.94, as low as 1.02, with a median of 1.45 over the past 12 months.
These are only a few of the key metrics included in KB Home and PulteGroup strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, KBH and PHM look like an impressive value stock at the moment.