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Are Investors Undervaluing BuildABear Workshop (BBW) 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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One stock to keep an eye on is BuildABear Workshop (BBW - Free Report) . BBW is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 6.43, while its industry has an average P/E of 12.28. BBW's Forward P/E has been as high as 18.84 and as low as 5.96, with a median of 8.81, all within the past year.

Finally, our model also underscores that BBW has a P/CF ratio of 4.55. 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. BBW's P/CF compares to its industry's average P/CF of 12.18. Over the past 52 weeks, BBW's P/CF has been as high as 15.63 and as low as 3.96, with a median of 6.25.

Another great Retail - Miscellaneous stock you could consider is Seven and I Holdings Co. (SVNDY - Free Report) , which is a # 1 (Strong Buy) stock with a Value Score of A.

Seven and I Holdings Co. sports a P/B ratio of 1.21 as well; this compares to its industry's price-to-book ratio of 9.46. In the past 52 weeks, SVNDY's P/B has been as high as 1.68, as low as 1.21, with a median of 1.44.

These are only a few of the key metrics included in BuildABear Workshop and Seven and I Holdings Co. strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, BBW and SVNDY look like an impressive value stock at the moment.


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Build-A-Bear Workshop, Inc. (BBW) - free report >>

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