Beacon Roofing Supply(BECN) ZACKS·2025-01-07 16:06Investment Strategy - Value investing is a popular method to identify undervalued stocks with profit potential, relying on traditional analysis of key valuation metrics [2] - The Zacks Style Scores system helps identify stocks with specific traits, such as high Zacks Rank and "A" grades for Value, indicating high-quality value stocks [3] Company Analysis: Beacon Roofing Supply (BECN) - BECN currently holds a Zacks Rank of 2 (Buy) and an "A" grade for Value, suggesting strong investment potential [4] - The company's P/E ratio is 12.46, significantly lower than the industry average of 18.35, indicating potential undervaluation [4] - BECN's Forward P/E has ranged between 9.68 and 14.04 over the past 12 months, with a median of 11.50 [4] - The PEG ratio of BECN is 1.66, below the industry average of 1.93, suggesting the stock may be undervalued relative to its earnings growth potential [5] - BECN's PEG ratio has fluctuated between 1.14 and 1.74 over the past year, with a median of 1.47 [5] - The P/S ratio of BECN is 0.65, lower than the industry average of 0.88, indicating potential undervaluation based on sales performance [6] - BECN's P/CF ratio is 11.39, significantly lower than the industry average of 27.44, suggesting the stock is undervalued relative to its cash flow [7] - The P/CF ratio has ranged between 8.71 and 12.63 over the past 52 weeks, with a median of 10.26 [7] Conclusion - BECN appears to be undervalued based on multiple valuation metrics, including P/E, PEG, P/S, and P/CF ratios, compared to industry averages [4][5][6][7] - The company's strong earnings outlook further supports its potential as a high-quality value stock [8]