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Should Value Investors Buy BGSF (BGSF) Stock?

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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.

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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 value investors might notice is BGSF (BGSF - Free Report) . BGSF 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 10.91 right now. For comparison, its industry sports an average P/E of 25.93. Over the last 12 months, BGSF's Forward P/E has been as high as 16.24 and as low as 9.93, with a median of 11.18.

We also note that BGSF holds a PEG ratio of 0.55. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. BGSF's industry has an average PEG of 0.66 right now. Within the past year, BGSF's PEG has been as high as 0.81 and as low as 0.50, with a median of 0.56.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. BGSF has a P/S ratio of 0.49. This compares to its industry's average P/S of 1.39.

Finally, investors should note that BGSF has a P/CF ratio of 9.23. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 27.69. BGSF's P/CF has been as high as 26.33 and as low as 8.37, with a median of 11.74, all within the past year.

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


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