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Is BrightSphere Investment Group (BSIG) Stock Undervalued 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.

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

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 value investors might notice is BrightSphere Investment Group (BSIG - Free Report) . BSIG is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 10.01, while its industry has an average P/E of 14.29. BSIG's Forward P/E has been as high as 15.76 and as low as 9.04, with a median of 12.08, all within the past year.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. BSIG has a P/S ratio of 1.78. This compares to its industry's average P/S of 2.45.

Finally, we should also recognize that BSIG has a P/CF ratio of 8.50. 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. BSIG's current P/CF looks attractive when compared to its industry's average P/CF of 28.10. Over the past 52 weeks, BSIG's P/CF has been as high as 10.76 and as low as 6.09, with a median of 8.87.

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


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