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Should Value Investors Buy BMC (BMCH) Stock?

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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.

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.

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.

One stock to keep an eye on is BMC . BMCH is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 13.44, while its industry has an average P/E of 19.09. Over the last 12 months, BMCH's Forward P/E has been as high as 14.47 and as low as 8.47, with a median of 11.53.

Finally, our model also underscores that BMCH has a P/CF ratio of 8.90. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. BMCH's current P/CF looks attractive when compared to its industry's average P/CF of 13.68. Within the past 12 months, BMCH's P/CF has been as high as 9.60 and as low as 5.62, with a median of 6.93.

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

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