Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 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 to watch right now 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 is trading with a P/E ratio of 11.93, which compares to its industry's average of 23.68. Over the past 52 weeks, BBSI's Forward P/E has been as high as 17.72 and as low as -150.87, with a median of 13.29.
Investors will also notice that BBSI has a PEG ratio of 0.85. 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. BBSI's industry has an average PEG of 2.25 right now. Over the last 12 months, BBSI's PEG has been as high as 1.48 and as low as -12.57, with a median of 1.11.
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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. BBSI has a P/S ratio of 0.57. This compares to its industry's average P/S of 1.42.
Finally, we should also recognize that BBSI has a P/CF ratio of 11.74. 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. BBSI's current P/CF looks attractive when compared to its industry's average P/CF of 16.39. Within the past 12 months, BBSI's P/CF has been as high as 16.24 and as low as 10.22, with a median of 11.86.
Another great Outsourcing stock you could consider is Cap Gemini (CGEMY - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Cap Gemini is trading at a forward earnings multiple of 15.11 at the moment, with a PEG ratio of 1.26. This compares to its industry's average P/E of 23.68 and average PEG ratio of 2.25.
Over the last 12 months, CGEMY's P/E has been as high as 21.31, as low as 14.56, with a median of 17.72, and its PEG ratio has been as high as 1.77, as low as 1.23, with a median of 1.45.
Cap Gemini also has a P/B ratio of 2.87 compared to its industry's price-to-book ratio of 14.01. Over the past year, its P/B ratio has been as high as 5.15, as low as 2.77, with a median of 3.59.
These are only a few of the key metrics included in Barrett Business Services and Cap Gemini strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, BBSI and CGEMY look like an impressive value stock at the moment.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 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 to watch right now 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 is trading with a P/E ratio of 11.93, which compares to its industry's average of 23.68. Over the past 52 weeks, BBSI's Forward P/E has been as high as 17.72 and as low as -150.87, with a median of 13.29.
Investors will also notice that BBSI has a PEG ratio of 0.85. 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. BBSI's industry has an average PEG of 2.25 right now. Over the last 12 months, BBSI's PEG has been as high as 1.48 and as low as -12.57, with a median of 1.11.
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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. BBSI has a P/S ratio of 0.57. This compares to its industry's average P/S of 1.42.
Finally, we should also recognize that BBSI has a P/CF ratio of 11.74. 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. BBSI's current P/CF looks attractive when compared to its industry's average P/CF of 16.39. Within the past 12 months, BBSI's P/CF has been as high as 16.24 and as low as 10.22, with a median of 11.86.
Another great Outsourcing stock you could consider is Cap Gemini (CGEMY - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Cap Gemini is trading at a forward earnings multiple of 15.11 at the moment, with a PEG ratio of 1.26. This compares to its industry's average P/E of 23.68 and average PEG ratio of 2.25.
Over the last 12 months, CGEMY's P/E has been as high as 21.31, as low as 14.56, with a median of 17.72, and its PEG ratio has been as high as 1.77, as low as 1.23, with a median of 1.45.
Cap Gemini also has a P/B ratio of 2.87 compared to its industry's price-to-book ratio of 14.01. Over the past year, its P/B ratio has been as high as 5.15, as low as 2.77, with a median of 3.59.
These are only a few of the key metrics included in Barrett Business Services and Cap Gemini strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, BBSI and CGEMY look like an impressive value stock at the moment.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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