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Is Beacon Roofing Supply (BECN) a Great Value Stock Right Now?
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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.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is Beacon Roofing Supply (BECN - Free Report) . BECN is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 10.06, while its industry has an average P/E of 18.52. BECN's Forward P/E has been as high as 12.74 and as low as 7.29, with a median of 10.10, all within the past year.
We also note that BECN holds a PEG ratio of 1.34. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. BECN's PEG compares to its industry's average PEG of 1.96. Within the past year, BECN's PEG has been as high as 1.74 and as low as 1.29, with a median of 1.58.
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. BECN has a P/S ratio of 0.58. This compares to its industry's average P/S of 1.05.
Finally, investors will want to recognize that BECN has a P/CF ratio of 8.65. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 13.86. Over the past year, BECN's P/CF has been as high as 13.49 and as low as 5.55, with a median of 8.05.
These are only a few of the key metrics included in Beacon Roofing Supply's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, BECN looks like an impressive value stock at the moment.
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Is Beacon Roofing Supply (BECN) a Great Value Stock Right Now?
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.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is Beacon Roofing Supply (BECN - Free Report) . BECN is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 10.06, while its industry has an average P/E of 18.52. BECN's Forward P/E has been as high as 12.74 and as low as 7.29, with a median of 10.10, all within the past year.
We also note that BECN holds a PEG ratio of 1.34. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. BECN's PEG compares to its industry's average PEG of 1.96. Within the past year, BECN's PEG has been as high as 1.74 and as low as 1.29, with a median of 1.58.
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. BECN has a P/S ratio of 0.58. This compares to its industry's average P/S of 1.05.
Finally, investors will want to recognize that BECN has a P/CF ratio of 8.65. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 13.86. Over the past year, BECN's P/CF has been as high as 13.49 and as low as 5.55, with a median of 8.05.
These are only a few of the key metrics included in Beacon Roofing Supply's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, BECN looks like an impressive value stock at the moment.