Are These Construction Stocks a Great Value Stocks 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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 to watch right now is Loma Negra Compania Industrial Argentina (LOMA). LOMA is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 3.97. This compares to its industry's average Forward P/E of 5.40. Over the past year, LOMA's Forward P/E has been as high as 13.84 and as low as 3.97, with a median of 7.80.
Another notable valuation metric for LOMA is its P/B ratio of 1.03. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. LOMA's current P/B looks attractive when compared to its industry's average P/B of 1.08. Over the past 12 months, LOMA's P/B has been as high as 1.59 and as low as 0.96, with a median of 1.23.
Finally, investors should note that LOMA has a P/CF ratio of 4.60. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 5.74. Within the past 12 months, LOMA's P/CF has been as high as 5.91 and as low as 2.85, with a median of 4.21.
Another great Building Products - Home Builders stock you could consider is Tri Pointe Homes (TPH), which is a # 2 (Buy) stock with a Value Score of A.
Tri Pointe Homes sports a P/B ratio of 1.02 as well; this compares to its industry's price-to-book ratio of 1.08. In the past 52 weeks, TPH's P/B has been as high as 1.36, as low as 0.93, with a median of 1.16.
These are only a few of the key metrics included in Loma Negra Compania Industrial Argentina and Tri Pointe Homes strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, LOMA and TPH look like an impressive value stock at the moment.
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Loma Negra Compania Industrial Argentina S.A. Sponsored ADR (LOMA) : Free Stock Analysis Report
Tri Pointe Homes Inc. (TPH) : Free Stock Analysis Report
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