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Why This 1 Value Stock Could Be a Great Addition to Your Portfolio

Zacks Equity Research
·2 min read

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

Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.

Why Investors Should Pay Attention to This Value Stock

Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and discounted stocks.

TopBuild (BLD)

Headquartered in Daytona Beach, FL, TopBuild Corp. is an installer and distributor of insulation and other building products to the U.S. construction industry. TopBuild, which earlier operated as a subsidiary of Masco Corporation, provides insulation and building material services across the nation through TruTeam and Service Partners. The company started trading on the NYSE under the symbol “BLD" from Jul 1, 2015.

BLD boasts a Value Style Score of B and VGM Score of B, and holds a Zacks Rank #2 (Buy) rating. Shares of TopBuild are trading at a forward earnings multiple of 19.6X, as well as a PEG Ratio of 2, a Price/Cash Flow ratio of 17.6X, and a Price/Sales ratio of 2.6X.

Many value investors pay close attention to a company's earnings as well. For BLD, two analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.22 to $21.63 per share for 2024. Per share BLD boasts an average earnings surprise of 12%.

BLD 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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TopBuild Corp. (BLD) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research