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Should Value Investors Buy Barrett Business Services (BBSI) Stock?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Barrett Business Services (BBSI - Free Report) . BBSI is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 14.29, which compares to its industry's average of 22.78. Over the past year, BBSI's Forward P/E has been as high as 16.43 and as low as 10.05, with a median of 14.31.
Another notable valuation metric for BBSI is its P/B ratio of 4.08. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 8.14. Over the past year, BBSI's P/B has been as high as 5.29 and as low as 3.45, with a median of 4.65.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. BBSI has a P/S ratio of 0.69. This compares to its industry's average P/S of 0.92.
Finally, investors should note that BBSI has a P/CF ratio of 11.77. 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. BBSI's current P/CF looks attractive when compared to its industry's average P/CF of 14.03. BBSI's P/CF has been as high as 14.72 and as low as 10.03, with a median of 12.11, all within the past year.
These are just a handful of the figures considered in Barrett Business Services'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 BBSI is an impressive value stock right now.
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Should Value Investors Buy Barrett Business Services (BBSI) Stock?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Barrett Business Services (BBSI - Free Report) . BBSI is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 14.29, which compares to its industry's average of 22.78. Over the past year, BBSI's Forward P/E has been as high as 16.43 and as low as 10.05, with a median of 14.31.
Another notable valuation metric for BBSI is its P/B ratio of 4.08. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 8.14. Over the past year, BBSI's P/B has been as high as 5.29 and as low as 3.45, with a median of 4.65.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. BBSI has a P/S ratio of 0.69. This compares to its industry's average P/S of 0.92.
Finally, investors should note that BBSI has a P/CF ratio of 11.77. 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. BBSI's current P/CF looks attractive when compared to its industry's average P/CF of 14.03. BBSI's P/CF has been as high as 14.72 and as low as 10.03, with a median of 12.11, all within the past year.
These are just a handful of the figures considered in Barrett Business Services'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 BBSI is an impressive value stock right now.