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Is Bridgepoint Education (BPI) a Great Value Stock 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 company to watch right now is Bridgepoint Education . BPI is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 13.52. This compares to its industry's average Forward P/E of 24.50. Over the past year, BPI's Forward P/E has been as high as 42 and as low as 12.49, with a median of 17.55.

We also note that BPI holds a PEG ratio of 1.35. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. BPI's industry currently sports an average PEG of 1.57. Within the past year, BPI's PEG has been as high as 4.20 and as low as 1.25, with a median of 1.75.

Finally, investors will want to recognize that BPI has a P/CF ratio of 11.18. 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. BPI's P/CF compares to its industry's average P/CF of 26.37. BPI's P/CF has been as high as 23.79 and as low as 8.14, with a median of 14.60, all within the past year.

These are only a few of the key metrics included in Bridgepoint Education's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, BPI looks like an impressive value stock at the moment.

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