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Should Value Investors Buy BrightView (BV) Stock?

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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, value investing is easily one of the most popular ways to find great stocks in any market environment. 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.

BrightView (BV - Free Report) is a stock many investors are watching right now. BV is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. BV has a P/S ratio of 0.46. This compares to its industry's average P/S of 0.67.

Finally, investors should note that BV has a P/CF ratio of 6.56. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. BV's current P/CF looks attractive when compared to its industry's average P/CF of 14.08. Over the past 52 weeks, BV's P/CF has been as high as 7.72 and as low as 4.39, with a median of 5.53.

Value investors will likely look at more than just these metrics, but the above data helps show that BrightView is likely undervalued currently. And when considering the strength of its earnings outlook, BV sticks out at as one of the market's strongest value stocks.


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