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Is BG Staffing (BGSF) Stock Undervalued Right Now?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

BG Staffing (BGSF - Free Report) is a stock many investors are watching right now. BGSF is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value.

Investors should also note that BGSF holds a PEG ratio of 0.65. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. BGSF's industry currently sports an average PEG of 1.80. Within the past year, BGSF's PEG has been as high as 0.83 and as low as 0.22, with a median of 0.63.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. BGSF has a P/S ratio of 0.47. This compares to its industry's average P/S of 0.5.

Value investors will likely look at more than just these metrics, but the above data helps show that BG Staffing is likely undervalued currently. And when considering the strength of its earnings outlook, BGSF sticks out at as one of the market's strongest value stocks.


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