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Should Value Investors Buy CONCRETE PUMPING HOLDINGS, INC. (BBCP) 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.

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 to watch right now is CONCRETE PUMPING HOLDINGS, INC. (BBCP - Free Report) . BBCP is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.

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. BBCP has a P/S ratio of 0.66. This compares to its industry's average P/S of 1.63.

Finally, we should also recognize that BBCP has a P/CF ratio of 3.02. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. BBCP's current P/CF looks attractive when compared to its industry's average P/CF of 9.43. Over the past year, BBCP's P/CF has been as high as 15.82 and as low as 1.83, with a median of 7.78.

These are only a few of the key metrics included in CONCRETE PUMPING HOLDINGS, INC.'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, BBCP looks like an impressive value stock at the moment.


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