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Are Investors Undervaluing Brink's (BCO) Right Now?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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.

One company value investors might notice is Brink's (BCO - Free Report) . BCO is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 15.34 right now. For comparison, its industry sports an average P/E of 24.55. Over the past 52 weeks, BCO's Forward P/E has been as high as 19.47 and as low as 10.59, with a median of 15.80.

Finally, investors will want to recognize that BCO has a P/CF ratio of 16.32. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 16.86. Within the past 12 months, BCO's P/CF has been as high as 19.98 and as low as 8.96, with a median of 14.68.

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


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