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Are Investors Undervaluing Arcosa (ACA) Right Now?

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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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 stock to keep an eye on is Arcosa (ACA - Free Report) . ACA is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.

Another valuation metric that we should highlight is ACA's P/B ratio of 1.48. The P/B is a method of comparing a stock's market value to 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 3.74. ACA's P/B has been as high as 1.69 and as low as 1.16, with a median of 1.45, over the past year.

Finally, investors should note that ACA has a P/CF ratio of 7.69. 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. ACA's P/CF compares to its industry's average P/CF of 16.24. ACA's P/CF has been as high as 12.35 and as low as 6.31, with a median of 8.07, all within the past year.

Another great Building Products - Miscellaneous stock you could consider is Owens Corning (OC - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.

Shares of Owens Corning are currently trading at a forward earnings multiple of 8.88 and a PEG ratio of 1.13 compared to its industry's P/E and PEG ratios of 12.73 and 1.01, respectively.


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