Is Landsea Homes (LSEA) 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, 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.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
Landsea Homes (LSEA) is a stock many investors are watching right now. LSEA is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 7.93, which compares to its industry's average of 8.59. Over the last 12 months, LSEA's Forward P/E has been as high as 10.74 and as low as 1.72, with a median of 4.98.
Another notable valuation metric for LSEA is its P/B ratio of 0.57. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.35. LSEA's P/B has been as high as 0.66 and as low as 0.27, with a median of 0.36, over the past year.
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. LSEA has a P/S ratio of 0.31. This compares to its industry's average P/S of 0.71.
Another great Building Products - Home Builders stock you could consider is Taylor Morrison Home (TMHC), which is a # 1 (Strong Buy) stock with a Value Score of A.
Additionally, Taylor Morrison Home has a P/B ratio of 0.97 while its industry's price-to-book ratio sits at 1.35. For TMHC, this valuation metric has been as high as 1.11, as low as 0.57, with a median of 0.83 over the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Landsea Homes and Taylor Morrison Home are likely undervalued currently. And when considering the strength of its earnings outlook, LSEA and TMHC sticks out as one of the market's strongest value stocks.
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Landsea Homes Corporation (LSEA) : Free Stock Analysis Report
Taylor Morrison Home Corporation (TMHC) : Free Stock Analysis Report
