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Are Investors Undervaluing These Business Services Stocks Right Now?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
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 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.
One company to watch right now is Barrett Business Services (BBSI - Free Report) . BBSI is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 14.36. This compares to its industry's average Forward P/E of 25.70. Over the past 52 weeks, BBSI's Forward P/E has been as high as 18.20 and as low as -150.87, with a median of 16.13.
Investors will also notice that BBSI has a PEG ratio of 1.20. 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. BBSI's industry currently sports an average PEG of 2.33. BBSI's PEG has been as high as 1.52 and as low as -12.57, with a median of 1.34, all within the past year.
Finally, investors will want to recognize that BBSI has a P/CF ratio of 13.41. 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 17.78. Over the past year, BBSI's P/CF has been as high as 16.24 and as low as 10.22, with a median of 13.52.
Brink's (BCO - Free Report) may be another strong Outsourcing stock to add to your shortlist. BCO is a # 2 (Buy) stock with a Value grade of A.
Furthermore, Brink's holds a P/B ratio of 13.19 and its industry's price-to-book ratio is 10.66. BCO's P/B has been as high as 19.39, as low as 10.50, with a median of 13.04 over the past 12 months.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Barrett Business Services and Brink's are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BBSI and BCO feels like a great value stock at the moment.
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Are Investors Undervaluing These Business Services Stocks Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
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 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.
One company to watch right now is Barrett Business Services (BBSI - Free Report) . BBSI is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 14.36. This compares to its industry's average Forward P/E of 25.70. Over the past 52 weeks, BBSI's Forward P/E has been as high as 18.20 and as low as -150.87, with a median of 16.13.
Investors will also notice that BBSI has a PEG ratio of 1.20. 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. BBSI's industry currently sports an average PEG of 2.33. BBSI's PEG has been as high as 1.52 and as low as -12.57, with a median of 1.34, all within the past year.
Finally, investors will want to recognize that BBSI has a P/CF ratio of 13.41. 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 17.78. Over the past year, BBSI's P/CF has been as high as 16.24 and as low as 10.22, with a median of 13.52.
Brink's (BCO - Free Report) may be another strong Outsourcing stock to add to your shortlist. BCO is a # 2 (Buy) stock with a Value grade of A.
Furthermore, Brink's holds a P/B ratio of 13.19 and its industry's price-to-book ratio is 10.66. BCO's P/B has been as high as 19.39, as low as 10.50, with a median of 13.04 over the past 12 months.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Barrett Business Services and Brink's are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BBSI and BCO feels like a great value stock at the moment.