Is Eagle Materials (EXP) a Great Value Stock 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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 stock to keep an eye on is Eagle Materials (EXP). EXP is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 13.46, while its industry has an average P/E of 21.92. EXP's Forward P/E has been as high as 13.79 and as low as 9.94, with a median of 11.87, all within the past year.
Finally, our model also underscores that EXP has a P/CF ratio of 11.41. 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 35.14. Over the past year, EXP's P/CF has been as high as 11.50 and as low as 8.18, with a median of 9.57.
Investors could also keep in mind Summit Materials (SUM), an Building Products - Concrete and Aggregates stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Summit Materials also has a P/B ratio of 2 compared to its industry's price-to-book ratio of 4.85. Over the past year, its P/B ratio has been as high as 2.27, as low as 1.55, with a median of 1.85.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Eagle Materials and Summit Materials are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, EXP and SUM feels like a great value stock at the moment.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Eagle Materials Inc (EXP) : Free Stock Analysis Report
Summit Materials, Inc. (SUM) : Free Stock Analysis Report
