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Are Investors Undervaluing UFP Industries (UFPI) Right Now?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
UFP Industries (UFPI - Free Report) is a stock many investors are watching right now. UFPI is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 14.59, while its industry has an average P/E of 25.52. Over the last 12 months, UFPI's Forward P/E has been as high as 16.50 and as low as 9.18, with a median of 11.79.
Another valuation metric that we should highlight is UFPI's P/B ratio of 2.37. 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 company's current P/B looks solid when compared to its industry's average P/B of 3.29. Within the past 52 weeks, UFPI's P/B has been as high as 2.67 and as low as 1.75, with a median of 2.16.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. UFPI has a P/S ratio of 0.94. This compares to its industry's average P/S of 1.41.
Finally, we should also recognize that UFPI has a P/CF ratio of 10.80. 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 stock's P/CF looks attractive against its industry's average P/CF of 27.57. UFPI's P/CF has been as high as 12.13 and as low as 5.98, with a median of 9.04, all within the past year.
These are only a few of the key metrics included in UFP Industries'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, UFPI looks like an impressive value stock at the moment.
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Are Investors Undervaluing UFP Industries (UFPI) Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
UFP Industries (UFPI - Free Report) is a stock many investors are watching right now. UFPI is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 14.59, while its industry has an average P/E of 25.52. Over the last 12 months, UFPI's Forward P/E has been as high as 16.50 and as low as 9.18, with a median of 11.79.
Another valuation metric that we should highlight is UFPI's P/B ratio of 2.37. 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 company's current P/B looks solid when compared to its industry's average P/B of 3.29. Within the past 52 weeks, UFPI's P/B has been as high as 2.67 and as low as 1.75, with a median of 2.16.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. UFPI has a P/S ratio of 0.94. This compares to its industry's average P/S of 1.41.
Finally, we should also recognize that UFPI has a P/CF ratio of 10.80. 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 stock's P/CF looks attractive against its industry's average P/CF of 27.57. UFPI's P/CF has been as high as 12.13 and as low as 5.98, with a median of 9.04, all within the past year.
These are only a few of the key metrics included in UFP Industries'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, UFPI looks like an impressive value stock at the moment.