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Is Forterra (FRTA) a Great Value Stock Right Now?

Zacks Equity Research
·2 min read

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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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.

Forterra (FRTA) is a stock many investors are watching right now. FRTA is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 14.66. This compares to its industry's average Forward P/E of 32.24. Over the past 52 weeks, FRTA's Forward P/E has been as high as 57.46 and as low as 4.83, with a median of 14.05.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. FRTA has a P/S ratio of 0.8. This compares to its industry's average P/S of 1.21.

Finally, investors should note that FRTA has a P/CF ratio of 9.51. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. FRTA's P/CF compares to its industry's average P/CF of 22.15. Within the past 12 months, FRTA's P/CF has been as high as 10.14 and as low as 2.34, with a median of 7.12.

These are just a handful of the figures considered in Forterra's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that FRTA is an impressive value stock right now.


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