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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.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 company to watch right now 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 9.43 right now. For comparison, its industry sports an average P/E of 18.65. Over the past 52 weeks, BCO's Forward P/E has been as high as 10.84 and as low as 7.88, with a median of 9.39.
Investors should also recognize that BCO has a P/B ratio of 5.29. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 12.37. Over the past 12 months, BCO's P/B has been as high as 9.13 and as low as 4.38, with a median of 6.45.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. BCO has a P/S ratio of 0.68. This compares to its industry's average P/S of 0.69.
Finally, we should also recognize that BCO has a P/CF ratio of 8.92. 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. This stock's P/CF looks attractive against its industry's average P/CF of 15.33. Over the past year, BCO's P/CF has been as high as 9.48 and as low as 5.52, with a median of 6.92.
Another great Outsourcing stock you could consider is Cap Gemini (CGEMY - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Cap Gemini is currently trading with a Forward P/E ratio of 14.51 while its PEG ratio sits at 1.68. Both of the company's metrics compare favorably to its industry's average P/E of 18.65 and average PEG ratio of 1.90.
CGEMY's Forward P/E has been as high as 18.65 and as low as 12.85, with a median of 15.37. During the same time period, its PEG ratio has been as high as 1.88, as low as 1.12, with a median of 1.41.
Cap Gemini sports a P/B ratio of 3.13 as well; this compares to its industry's price-to-book ratio of 12.37. In the past 52 weeks, CGEMY's P/B has been as high as 3.55, as low as 2.69, with a median of 3.12.
These are only a few of the key metrics included in Brink's and Cap Gemini strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, BCO and CGEMY look like an impressive value stock at the moment.
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Should Value Investors Buy Brink's (BCO) Stock?
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.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 company to watch right now 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 9.43 right now. For comparison, its industry sports an average P/E of 18.65. Over the past 52 weeks, BCO's Forward P/E has been as high as 10.84 and as low as 7.88, with a median of 9.39.
Investors should also recognize that BCO has a P/B ratio of 5.29. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 12.37. Over the past 12 months, BCO's P/B has been as high as 9.13 and as low as 4.38, with a median of 6.45.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. BCO has a P/S ratio of 0.68. This compares to its industry's average P/S of 0.69.
Finally, we should also recognize that BCO has a P/CF ratio of 8.92. 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. This stock's P/CF looks attractive against its industry's average P/CF of 15.33. Over the past year, BCO's P/CF has been as high as 9.48 and as low as 5.52, with a median of 6.92.
Another great Outsourcing stock you could consider is Cap Gemini (CGEMY - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Cap Gemini is currently trading with a Forward P/E ratio of 14.51 while its PEG ratio sits at 1.68. Both of the company's metrics compare favorably to its industry's average P/E of 18.65 and average PEG ratio of 1.90.
CGEMY's Forward P/E has been as high as 18.65 and as low as 12.85, with a median of 15.37. During the same time period, its PEG ratio has been as high as 1.88, as low as 1.12, with a median of 1.41.
Cap Gemini sports a P/B ratio of 3.13 as well; this compares to its industry's price-to-book ratio of 12.37. In the past 52 weeks, CGEMY's P/B has been as high as 3.55, as low as 2.69, with a median of 3.12.
These are only a few of the key metrics included in Brink's and Cap Gemini strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, BCO and CGEMY look like an impressive value stock at the moment.