Are Investors Undervaluing Century Communities (CCS) 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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 company value investors might notice is Century Communities (CCS). CCS is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A.
We should also highlight that CCS has a P/B ratio of 1.06. 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. CCS's current P/B looks attractive when compared to its industry's average P/B of 1.36. 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 0.89.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CCS has a P/S ratio of 0.61. This compares to its industry's average P/S of 0.74.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Century Communities is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CCS feels like a great value stock at the moment.
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Century Communities, Inc. (CCS) : Free Stock Analysis Report
