Here’s Why Beacon Roofing Supply (BECN) is a Strong Value Stock


Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.

While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.

Why Investors Should Pay Attention to This Value Stock

Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks.

Beacon Roofing Supply (BECN)

Incorporated on Aug 22, 1997, Beacon Roofing Supply is the largest publicly traded distributor of residential and non-residential roofing materials and complementary building products in the United States and Canada. The company is one of the industry’s oldest and most recognized distributors. Beacon purchases products from a large number of manufacturers and then distributes these goods to customers, including contractors, home builders, retailers as well as building materials suppliers.

BECN sits at a Zacks Rank #3 (Hold), holds a Value Style Score of A, and has a VGM Score of A. Compared to the Building Products – Retail industry’s P/E of 14.1X, shares of Beacon Roofing Supply are trading at a forward P/E of 10.6X. BECN also has a PEG Ratio of 1.5, a Price/Cash Flow ratio of 7.9X, and a Price/Sales ratio of 0.6X.

A company’s earnings performance is important for value investors as well. For fiscal 2023, five analysts revised their earnings estimate higher in the last 60 days for BECN, while the Zacks Consensus Estimate has increased $0.03 to $7.53 per share. BECN also holds an average earnings surprise of 11.1%.

BECN should be on investors’ short lists because of its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores.

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