While the tried and tested Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to create their own individual strategies. With this in mind, we always pay attention to 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 use proven metrics and fundamental analysis to find companies they believe are undervalued at their current share price levels.
Luckily, Zacks developed its own style scores system to find stocks with specific characteristics. For value investors, the “Value” category of the system should be of interest. Stocks with an “A” rating in the Value category and high Zacks ranks are among the best value stocks on the market right now.
One company stock that might catch the eye of investors is Beacon Roofing Supply (BECN). BECN currently has a Zacks rank of #2 (Buy) and a Value rating of A. The stock has a forward P/E of 12.63. This compares to the industry average forward P/E of 18.62. BECN’s forward P/E over the past year has been 12.69 and 7.29, with a median of 9.07.
Value investors also often use P/E. This metric is determined by dividing the stock price by the company’s revenue. This is a popular metric because sales on the income statement are harder to manipulate and are therefore often seen as a better indicator of performance. BECN has a P/S ratio of 0.64. That compares to the industry average P/E of 0.86.
Finally, we should also recognize that BECN has a P/CF ratio of 9.35. This metric takes into account a company’s operating cash flow and can be used to find stocks that are undervalued given their solid cash prospects. BECN’s P/CF compares to the industry average P/CF of 13.67. Over the last 52 weeks, BECN’s P/CF was 18.10 and just 5.55, with a median of 7.47.
These are just some of the numbers that count in Beacon Roofing Supply’s outstanding value rating. Still, they show that the stock is likely undervalued right now. Add that to the strong earnings outlook and we can clearly see that BECN is an impressive value stock right now.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts have each selected their favorite, which will skyrocket by +100% or more in the coming months. From these five, Research Director Sheraz Mian selects one that has the most explosive uptrend of all.
It’s a little-known chemical company that’s up 65% over the last year, but it’s still dirt cheap. With continued demand, rising earnings estimates for 2022 and $1.5 billion in share buybacks, retail investors could jump in at any time.
This company could rival or outperform other Zacks stocks set to double in recent times, such as Boston Beer Company, up +143.0% in just over 9 months, and NVIDIA, which is up +143.0% in a little over 9 months increased by +175.9%.
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Beacon Roofing Supply, Inc. (BECN): Free Stock Research Report
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