Yahoo Finance Is UFP Industries (UFPI) a Great Value Stock Right Now?
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.
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.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is UFP Industries (UFPI). UFPI is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 9.87, while its industry has an average P/E of 22.50. Over the last 12 months, UFPI's Forward P/E has been as high as 12.28 and as low as 7, with a median of 9.46.
We should also highlight that UFPI has a P/B ratio of 1.93. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2.89. UFPI's P/B has been as high as 2.44 and as low as 1.68, with a median of 1.95, over the past year.
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. UFPI has a P/S ratio of 0.6. This compares to its industry's average P/S of 1.08.
Finally, investors will want to recognize that UFPI has a P/CF ratio of 7.16. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 15.79. Over the past year, UFPI's P/CF has been as high as 7.70 and as low as 5.24, with a median of 6.46.
These are only a few of the key metrics included in UFP Industries's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, UFPI looks like an impressive value stock at the moment.
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UFP Industries, Inc. (UFPI) : Free Stock Analysis Report
