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Is Barrett Business Services (BBSI) 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.

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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 Barrett Business Services (BBSI - Free Report) . BBSI is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 12.04, while its industry has an average P/E of 20.14. BBSI's Forward P/E has been as high as 19.73 and as low as 10.05, with a median of 14.97, all within the past year.

We should also highlight that BBSI has a P/B ratio of 4.78. 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 7.08. Within the past 52 weeks, BBSI's P/B has been as high as 9.36 and as low as 3.97, with a median of 6.24.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. BBSI has a P/S ratio of 0.5. This compares to its industry's average P/S of 0.82.

Finally, investors will want to recognize that BBSI has a P/CF ratio of 13.24. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. BBSI's current P/CF looks attractive when compared to its industry's average P/CF of 16.74. Over the past 52 weeks, BBSI's P/CF has been as high as 22.59 and as low as 11.03, with a median of 17.24.

Value investors will likely look at more than just these metrics, but the above data helps show that Barrett Business Services is likely undervalued currently. And when considering the strength of its earnings outlook, BBSI sticks out at as one of the market's strongest value stocks.


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