Back to top

Image: Bigstock

Is BuildABear Workshop (BBW) a Great Value Stock Right Now?

Read MoreHide Full Article

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 to watch right now is BuildABear Workshop (BBW - Free Report) . BBW is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 7.37, while its industry has an average P/E of 17.18. BBW's Forward P/E has been as high as 9.48 and as low as 4.39, with a median of 6.58, all within the past year.

Finally, we should also recognize that BBW has a P/CF ratio of 5.42. 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. BBW's current P/CF looks attractive when compared to its industry's average P/CF of 18.07. Over the past year, BBW's P/CF has been as high as 7.77 and as low as 3.11, with a median of 4.59.

DICK'S Sporting Goods (DKS - Free Report) may be another strong Retail - Miscellaneous stock to add to your shortlist. DKS is a # 2 (Buy) stock with a Value grade of A.

DICK'S Sporting Goods is currently trading with a Forward P/E ratio of 10.70 while its PEG ratio sits at 2.14. Both of the company's metrics compare favorably to its industry's average P/E of 17.18 and average PEG ratio of 1.59.

DKS's Forward P/E has been as high as 10.70 and as low as 5.57, with a median of 9.19. During the same time period, its PEG ratio has been as high as 2.14, as low as 0.62, with a median of 1.68.

Furthermore, DICK'S Sporting Goods holds a P/B ratio of 4.28 and its industry's price-to-book ratio is 15.65. DKS's P/B has been as high as 4.29, as low as 2.61, with a median of 3.80 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 BuildABear Workshop and DICK'S Sporting Goods are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BBW and DKS feels like a great value stock at the moment.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


DICK'S Sporting Goods, Inc. (DKS) - free report >>

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

Published in