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LPX vs. TREX: Which Stock Is the Better Value Option?
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Investors interested in Building Products - Wood stocks are likely familiar with Louisiana-Pacific (LPX - Free Report) and Trex (TREX - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Louisiana-Pacific and Trex are both sporting a Zacks Rank of # 2 (Buy) right now. This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is just one factor that value investors are interested in.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
LPX currently has a forward P/E ratio of 18.91, while TREX has a forward P/E of 29.99. We also note that LPX has a PEG ratio of 1.23. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. TREX currently has a PEG ratio of 2.56.
Another notable valuation metric for LPX is its P/B ratio of 4.27. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, TREX has a P/B of 8.
These metrics, and several others, help LPX earn a Value grade of B, while TREX has been given a Value grade of D.
Both LPX and TREX are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that LPX is the superior value option right now.
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LPX vs. TREX: Which Stock Is the Better Value Option?
Investors interested in Building Products - Wood stocks are likely familiar with Louisiana-Pacific (LPX - Free Report) and Trex (TREX - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Louisiana-Pacific and Trex are both sporting a Zacks Rank of # 2 (Buy) right now. This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is just one factor that value investors are interested in.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
LPX currently has a forward P/E ratio of 18.91, while TREX has a forward P/E of 29.99. We also note that LPX has a PEG ratio of 1.23. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. TREX currently has a PEG ratio of 2.56.
Another notable valuation metric for LPX is its P/B ratio of 4.27. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, TREX has a P/B of 8.
These metrics, and several others, help LPX earn a Value grade of B, while TREX has been given a Value grade of D.
Both LPX and TREX are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that LPX is the superior value option right now.