Why Beacon Roofing Supply (BECN) is a Top Value Stock for the Long-Term


For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.

Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.

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 boasts a Value Style Score of A and VGM Score of A, and holds a Zacks Rank #3 (Hold) rating. Shares of Beacon Roofing Supply are trading at a forward earnings multiple of 10.5X, as well as a PEG Ratio of 1.5, a Price/Cash Flow ratio of 7.8X, and a Price/Sales ratio of 0.6X.

Value investors don’t just pay attention to a company’s valuation ratios; positive earnings play a crucial role, too. Six analysts revised their earnings estimate upwards in the last 60 days for fiscal 2023. The Zacks Consensus Estimate has increased $0.15 to $7.52 per share. BECN has an average earnings surprise of 11.1%.

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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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