Yahoo Finance Is Builders FirstSource (BLDR) Stock Undervalued Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 stock to keep an eye on is Builders FirstSource (BLDR). BLDR is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 14.67. This compares to its industry's average Forward P/E of 21.96. BLDR's Forward P/E has been as high as 14.88 and as low as 7.99, with a median of 12.47, all within the past year.
We also note that BLDR holds a PEG ratio of 1.24. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. BLDR's industry has an average PEG of 2.20 right now. Over the past 52 weeks, BLDR's PEG has been as high as 1.24 and as low as 1.23, with a median of 1.23.
Finally, we should also recognize that BLDR has a P/CF ratio of 11.82. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. BLDR's current P/CF looks attractive when compared to its industry's average P/CF of 16.73. Over the past 52 weeks, BLDR's P/CF has been as high as 11.82 and as low as 3.59, with a median of 7.20.
Value investors will likely look at more than just these metrics, but the above data helps show that Builders FirstSource is likely undervalued currently. And when considering the strength of its earnings outlook, BLDR sticks out at as one of the market's strongest value stocks.
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Builders FirstSource, Inc. (BLDR) : Free Stock Analysis Report
