Are These Construction Stocks Undervalued Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
Loma Negra Compania Industrial Argentina (LOMA) is a stock many investors are watching right now. LOMA is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock holds a P/E ratio of 4.28, while its industry has an average P/E of 5.45. Over the last 12 months, LOMA's Forward P/E has been as high as 13.84 and as low as 4.23, with a median of 9.32.
Finally, investors will want to recognize that LOMA has a P/CF ratio of 4.97. 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 stock's P/CF looks attractive against its industry's average P/CF of 7.50. 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 4.08.
Investors could also keep in mind Tri Pointe Homes (TPH), an Building Products - Home Builders stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Furthermore, Tri Pointe Homes holds a P/B ratio of 1.06 and its industry's price-to-book ratio is 0.98. TPH's P/B has been as high as 1.36, as low as 0.97, with a median of 1.16 over the past 12 months.
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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