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Is Barrett Business Services (BBSI) Stock Undervalued Right Now?
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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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
Barrett Business Services (BBSI - Free Report) is a stock many investors are watching right now. BBSI is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 12.83. This compares to its industry's average Forward P/E of 21.28. Over the past year, BBSI's Forward P/E has been as high as 16.26 and as low as 5.28, with a median of 13.46.
We also note that BBSI holds a PEG ratio of 1.07. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. BBSI's PEG compares to its industry's average PEG of 1.99. BBSI's PEG has been as high as 1.25 and as low as 0.38, with a median of 1.01, all within the past year.
Another notable valuation metric for BBSI is its P/B ratio of 2.71. 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 company's current P/B looks solid when compared to its industry's average P/B of 7.06. Within the past 52 weeks, BBSI's P/B has been as high as 4.87 and as low as 1.27, with a median of 3.67.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. BBSI has a P/S ratio of 0.49. This compares to its industry's average P/S of 0.82.
Finally, investors will want to recognize that BBSI has a P/CF ratio of 9.06. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. BBSI's P/CF compares to its industry's average P/CF of 10.12. Over the past year, BBSI's P/CF has been as high as 13.52 and as low as 4.30, with a median of 11.61.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Barrett Business Services is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BBSI feels like a great value stock at the moment.
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Is Barrett Business Services (BBSI) Stock Undervalued 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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
Barrett Business Services (BBSI - Free Report) is a stock many investors are watching right now. BBSI is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 12.83. This compares to its industry's average Forward P/E of 21.28. Over the past year, BBSI's Forward P/E has been as high as 16.26 and as low as 5.28, with a median of 13.46.
We also note that BBSI holds a PEG ratio of 1.07. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. BBSI's PEG compares to its industry's average PEG of 1.99. BBSI's PEG has been as high as 1.25 and as low as 0.38, with a median of 1.01, all within the past year.
Another notable valuation metric for BBSI is its P/B ratio of 2.71. 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 company's current P/B looks solid when compared to its industry's average P/B of 7.06. Within the past 52 weeks, BBSI's P/B has been as high as 4.87 and as low as 1.27, with a median of 3.67.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. BBSI has a P/S ratio of 0.49. This compares to its industry's average P/S of 0.82.
Finally, investors will want to recognize that BBSI has a P/CF ratio of 9.06. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. BBSI's P/CF compares to its industry's average P/CF of 10.12. Over the past year, BBSI's P/CF has been as high as 13.52 and as low as 4.30, with a median of 11.61.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Barrett Business Services is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BBSI feels like a great value stock at the moment.