Is Builders FirstSource (BLDR) Stock Undervalued 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.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is Builders FirstSource (BLDR). BLDR is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 8.87. This compares to its industry's average Forward P/E of 16.39. BLDR's Forward P/E has been as high as 14.88 and as low as 3.62, with a median of 11.62, all within the past year.
Finally, investors will want to recognize that BLDR has a P/CF ratio of 6.27. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. BLDR's current P/CF looks attractive when compared to its industry's average P/CF of 12.56. BLDR's P/CF has been as high as 8.09 and as low as 2.57, with a median of 4.31, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Builders FirstSource is likely undervalued currently. And when considering the strength of its earnings outlook, BLDR sticks out at as one of the market's strongest value stocks.
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Builders FirstSource, Inc. (BLDR) : Free Stock Analysis Report
