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Are Investors Undervaluing Barings BDC (BBDC) Right Now?

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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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 value investors might notice is Barings BDC (BBDC - Free Report) . BBDC is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 8.30, while its industry has an average P/E of 8.40. BBDC's Forward P/E has been as high as 8.79 and as low as 7.13, with a median of 7.66, all within the past year.

We should also highlight that BBDC has a P/B ratio of 0.88. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 0.91. Within the past 52 weeks, BBDC's P/B has been as high as 0.90 and as low as 0.76, with a median of 0.81.

These are only a few of the key metrics included in Barings BDC'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, BBDC looks like an impressive value stock at the moment.


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