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Are Investors Undervaluing Brink's (BCO) 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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Brink's (BCO - Free Report) . BCO is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 10.07 right now. For comparison, its industry sports an average P/E of 19.20. Over the past year, BCO's Forward P/E has been as high as 10.84 and as low as 7.88, with a median of 9.38.
Another valuation metric that we should highlight is BCO's P/B ratio of 5.62. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 12.63. Over the past 12 months, BCO's P/B has been as high as 9.13 and as low as 4.38, with a median of 6.98.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. BCO has a P/S ratio of 0.72. This compares to its industry's average P/S of 0.8.
Finally, investors should note that BCO has a P/CF ratio of 9.48. 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 stock's P/CF looks attractive against its industry's average P/CF of 15.65. BCO's P/CF has been as high as 9.48 and as low as 5.52, with a median of 6.87, all within the past year.
Investors could also keep in mind Cap Gemini (CGEMY - Free Report) , an Outsourcing stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Shares of Cap Gemini are currently trading at a forward earnings multiple of 14.85 and a PEG ratio of 1.72 compared to its industry's P/E and PEG ratios of 19.20 and 1.93, respectively.
Over the last 12 months, CGEMY's P/E has been as high as 18.65, as low as 12.85, with a median of 15.48, and its PEG ratio has been as high as 1.88, as low as 1.12, with a median of 1.38.
Additionally, Cap Gemini has a P/B ratio of 3.19 while its industry's price-to-book ratio sits at 12.63. For CGEMY, this valuation metric has been as high as 3.55, as low as 2.69, with a median of 3.10 over the past year.
These are just a handful of the figures considered in Brink's and Cap Gemini'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 BCO and CGEMY is an impressive value stock right now.
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Are Investors Undervaluing Brink's (BCO) Right Now?
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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Brink's (BCO - Free Report) . BCO is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 10.07 right now. For comparison, its industry sports an average P/E of 19.20. Over the past year, BCO's Forward P/E has been as high as 10.84 and as low as 7.88, with a median of 9.38.
Another valuation metric that we should highlight is BCO's P/B ratio of 5.62. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 12.63. Over the past 12 months, BCO's P/B has been as high as 9.13 and as low as 4.38, with a median of 6.98.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. BCO has a P/S ratio of 0.72. This compares to its industry's average P/S of 0.8.
Finally, investors should note that BCO has a P/CF ratio of 9.48. 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 stock's P/CF looks attractive against its industry's average P/CF of 15.65. BCO's P/CF has been as high as 9.48 and as low as 5.52, with a median of 6.87, all within the past year.
Investors could also keep in mind Cap Gemini (CGEMY - Free Report) , an Outsourcing stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Shares of Cap Gemini are currently trading at a forward earnings multiple of 14.85 and a PEG ratio of 1.72 compared to its industry's P/E and PEG ratios of 19.20 and 1.93, respectively.
Over the last 12 months, CGEMY's P/E has been as high as 18.65, as low as 12.85, with a median of 15.48, and its PEG ratio has been as high as 1.88, as low as 1.12, with a median of 1.38.
Additionally, Cap Gemini has a P/B ratio of 3.19 while its industry's price-to-book ratio sits at 12.63. For CGEMY, this valuation metric has been as high as 3.55, as low as 2.69, with a median of 3.10 over the past year.
These are just a handful of the figures considered in Brink's and Cap Gemini'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 BCO and CGEMY is an impressive value stock right now.