NX or ROAD: Which Is the Better Value Stock Right Now?

Group 1 - Investors are considering Quanex Building Products (NX) and Construction Partners (ROAD) as potential undervalued stocks in the Building Products - Miscellaneous sector [1] - NX has a Zacks Rank of 1 (Strong Buy), indicating a stronger improvement in earnings outlook compared to ROAD, which has a Zacks Rank of 3 (Hold) [3] - Value investors utilize various traditional metrics to identify undervalued companies, including P/E ratio, P/S ratio, earnings yield, and cash flow per share [4] Group 2 - NX has a forward P/E ratio of 6.52, significantly lower than ROAD's forward P/E of 36.45, indicating better valuation [5] - NX's PEG ratio is 0.47, while ROAD's PEG ratio is 0.92, suggesting NX is expected to grow earnings at a more favorable rate relative to its price [5] - NX has a P/B ratio of 0.81, compared to ROAD's P/B of 4.91, further highlighting NX's undervaluation [6] Group 3 - Based on the valuation metrics, NX holds a Value grade of B, while ROAD has a Value grade of C, making NX a more attractive option for value investors [6]