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Are Investors Undervaluing Babcock International Group PLC (BCKIY) Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

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

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 company to watch right now is Babcock International Group PLC (BCKIY - Free Report) . BCKIY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 8.29 right now. For comparison, its industry sports an average P/E of 16.43. Over the past year, BCKIY's Forward P/E has been as high as 8.34 and as low as 5.98, with a median of 6.30.

Another valuation metric that we should highlight is BCKIY's P/B ratio of 1.12. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. BCKIY's current P/B looks attractive when compared to its industry's average P/B of 1.89. Within the past 52 weeks, BCKIY's P/B has been as high as 1.12 and as low as 0.79, with a median of 0.88.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Babcock International Group PLC is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BCKIY feels like a great value stock at the moment.


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