We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
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 9.28, which compares to its industry's average of 11.27. Over the past year, KBH's Forward P/E has been as high as 9.46 and as low as 5.72, with a median of 7.97.
We also note that KBH holds a PEG ratio of 0.79. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. KBH's industry has an average PEG of 0.86 right now. Over the last 12 months, KBH's PEG has been as high as 1.16 and as low as 0.64, with a median of 0.77.
Investors should also recognize that KBH has a P/B ratio of 1.55. 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 solid versus its industry's average P/B of 1.90. KBH's P/B has been as high as 1.56 and as low as 0.88, with a median of 1.26, over the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. KBH has a P/S ratio of 0.98. This compares to its industry's average P/S of 1.1.
Finally, investors will want to recognize that KBH has a P/CF ratio of 9.78. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. KBH's P/CF compares to its industry's average P/CF of 10.57. Over the past year, KBH's P/CF has been as high as 9.87 and as low as 5.04, with a median of 7.78.
Another great Building Products - Home Builders stock you could consider is Tri Pointe Homes (TPH - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Shares of Tri Pointe Homes currently holds a Forward P/E ratio of 9.40, and its PEG ratio is 0.72. In comparison, its industry sports average P/E and PEG ratios of 11.27 and 0.86.
TPH's price-to-earnings ratio has been as high as 11.01 and as low as 6.44, with a median of 8.65, while its PEG ratio has been as high as 0.87 and as low as 0.50, with a median of 0.67, all within the past year.
Additionally, Tri Pointe Homes has a P/B ratio of 1.41 while its industry's price-to-book ratio sits at 1.90. For TPH, this valuation metric has been as high as 1.45, as low as 0.81, with a median of 1.11 over the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that KB Home and Tri Pointe Homes are likely undervalued currently. And when considering the strength of its earnings outlook, KBH and TPH sticks out as one of the market's strongest value stocks.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Is KB Home (KBH) 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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
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 9.28, which compares to its industry's average of 11.27. Over the past year, KBH's Forward P/E has been as high as 9.46 and as low as 5.72, with a median of 7.97.
We also note that KBH holds a PEG ratio of 0.79. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. KBH's industry has an average PEG of 0.86 right now. Over the last 12 months, KBH's PEG has been as high as 1.16 and as low as 0.64, with a median of 0.77.
Investors should also recognize that KBH has a P/B ratio of 1.55. 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 solid versus its industry's average P/B of 1.90. KBH's P/B has been as high as 1.56 and as low as 0.88, with a median of 1.26, over the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. KBH has a P/S ratio of 0.98. This compares to its industry's average P/S of 1.1.
Finally, investors will want to recognize that KBH has a P/CF ratio of 9.78. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. KBH's P/CF compares to its industry's average P/CF of 10.57. Over the past year, KBH's P/CF has been as high as 9.87 and as low as 5.04, with a median of 7.78.
Another great Building Products - Home Builders stock you could consider is Tri Pointe Homes (TPH - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Shares of Tri Pointe Homes currently holds a Forward P/E ratio of 9.40, and its PEG ratio is 0.72. In comparison, its industry sports average P/E and PEG ratios of 11.27 and 0.86.
TPH's price-to-earnings ratio has been as high as 11.01 and as low as 6.44, with a median of 8.65, while its PEG ratio has been as high as 0.87 and as low as 0.50, with a median of 0.67, all within the past year.
Additionally, Tri Pointe Homes has a P/B ratio of 1.41 while its industry's price-to-book ratio sits at 1.90. For TPH, this valuation metric has been as high as 1.45, as low as 0.81, with a median of 1.11 over the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that KB Home and Tri Pointe Homes are likely undervalued currently. And when considering the strength of its earnings outlook, KBH and TPH sticks out as one of the market's strongest value stocks.