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Is Babcock International Group PLC (BCKIY) Stock Undervalued 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.

Babcock International Group PLC (BCKIY - Free Report) is a stock many investors are watching right now. BCKIY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 8.33. This compares to its industry's average Forward P/E of 13.91. BCKIY's Forward P/E has been as high as 8.33 and as low as 5.98, with a median of 6.21, all within the past year.

We should also highlight that BCKIY has a P/B ratio of 1.04. The P/B ratio pits a stock's market value against 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 1.84. Over the past 12 months, BCKIY's P/B has been as high as 1.06 and as low as 0.79, with a median of 0.88.

These are just a handful of the figures considered in Babcock International Group PLC'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 BCKIY is an impressive value stock right now.


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