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Are Investors Undervaluing Big 5 Sporting Goods (BGFV) 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.

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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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.

Big 5 Sporting Goods (BGFV - Free Report) is a stock many investors are watching right now. BGFV is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 8.85, while its industry has an average P/E of 13.01. Over the past 52 weeks, BGFV's Forward P/E has been as high as 16.17 and as low as -25.78, with a median of 11.35.

Finally, investors should note that BGFV has a P/CF ratio of 5.98. 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. BGFV's current P/CF looks attractive when compared to its industry's average P/CF of 19.28. Over the past year, BGFV's P/CF has been as high as 10.78 and as low as 3.91, with a median of 7.76.

These are just a handful of the figures considered in Big 5 Sporting Goods's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that BGFV is an impressive value stock right now.


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