Are Investors Undervaluing Century Communities (CCS) 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 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 Century Communities (CCS). CCS is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
Another valuation metric that we should highlight is CCS's P/B ratio of 1.12. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. CCS's current P/B looks attractive when compared to its industry's average P/B of 1.43. Within the past 52 weeks, CCS's P/B has been as high as 1.13 and as low as 0.64, with a median of 0.85.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. CCS has a P/S ratio of 0.58. This compares to its industry's average P/S of 0.75.
Finally, our model also underscores that CCS has a P/CF ratio of 5.72. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. CCS's current P/CF looks attractive when compared to its industry's average P/CF of 6.58. Over the past 52 weeks, CCS's P/CF has been as high as 5.75 and as low as 2.18, with a median of 3.01.
Loma Negra Compania Industrial Argentina (LOMA) may be another strong Building Products - Home Builders stock to add to your shortlist. LOMA is a # 1 (Strong Buy) stock with a Value grade of A.
Loma Negra Compania Industrial Argentina is trading at a forward earnings multiple of 6.01 at the moment, with a PEG ratio of 0.19. This compares to its industry's average P/E of 10.28 and average PEG ratio of 0.82.
Over the last 12 months, LOMA's P/E has been as high as 8.45, as low as 4.51, with a median of 6.61, and its PEG ratio has been as high as 0.27, as low as 0.14, with a median of 0.21.
Additionally, Loma Negra Compania Industrial Argentina has a P/B ratio of 1.05 while its industry's price-to-book ratio sits at 1.43. For LOMA, this valuation metric has been as high as 1.14, as low as 0.66, with a median of 0.96 over the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Century Communities and Loma Negra Compania Industrial Argentina are likely undervalued currently. And when considering the strength of its earnings outlook, CCS and LOMA sticks out as one of the market's strongest value stocks.
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Century Communities, Inc. (CCS) : Free Stock Analysis Report
Loma Negra Compania Industrial Argentina S.A. Sponsored ADR (LOMA) : Free Stock Analysis Report
