Is Installed Building Products (IBP) Stock Undervalued Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
One stock to keep an eye on is Installed Building Products (IBP). IBP is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 12.39, while its industry has an average P/E of 13.45. Over the past 52 weeks, IBP's Forward P/E has been as high as 17.45 and as low as 9.65, with a median of 13.63.
Finally, we should also recognize that IBP has a P/CF ratio of 9.56. 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. This stock's P/CF looks attractive against its industry's average P/CF of 17.35. IBP's P/CF has been as high as 12.24 and as low as 7.09, with a median of 9.14, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Installed Building Products is likely undervalued currently. And when considering the strength of its earnings outlook, IBP sticks out at as one of the market's strongest value stocks.
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Installed Building Products, Inc. (IBP) : Free Stock Analysis Report
