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Is Babcock International Group (BCKIY) a Great Value Stock Right Now?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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.

Babcock International Group (BCKIY - Free Report) is a stock many investors are watching right now. BCKIY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 7.36 right now. For comparison, its industry sports an average P/E of 21.12. BCKIY's Forward P/E has been as high as 9.46 and as low as 6.84, with a median of 7.37, all within the past year.

Investors should also recognize that BCKIY has a P/B ratio of 2.35. The P/B is a method of comparing a stock's market value to 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 4.23. Over the past year, BCKIY's P/B has been as high as 2.59 and as low as 1.92, with a median of 2.19.

These are only a few of the key metrics included in Babcock International Group's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, BCKIY looks like an impressive value stock at the moment.


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