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Is IBEX Limited (IBEX) a Great Value Stock 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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company to watch right now is IBEX Limited (IBEX - Free Report) . IBEX is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. IBEX has a P/S ratio of 0.63. This compares to its industry's average P/S of 1.02.

Finally, our model also underscores that IBEX has a P/CF ratio of 5.83. 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 11.86. IBEX's P/CF has been as high as 17.16 and as low as 5, with a median of 6.60, all within the past year.

Mitie Group (MITFY - Free Report) may be another strong Business - Services stock to add to your shortlist. MITFY is a # 2 (Buy) stock with a Value grade of A.

Additionally, Mitie Group has a P/B ratio of 1.98 while its industry's price-to-book ratio sits at 2. For MITFY, this valuation metric has been as high as 3.16, as low as 1.54, with a median of 2.12 over the past year.

These figures are just a handful of the metrics value investors tend to look at, but they help show that IBEX Limited and Mitie Group are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, IBEX and MITFY feels like a great value stock at the moment.


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