Back to top

Image: Bigstock

Is Brink's (BCO) a Great Value Stock Right Now?

Read MoreHide Full Article

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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), as well as an A grade for Value. The stock has a Forward P/E ratio of 14.23. This compares to its industry's average Forward P/E of 20.62. Over the past 52 weeks, BCO's Forward P/E has been as high as 23.56 and as low as 9.04, with a median of 15.02.

Investors should also note that BCO holds a PEG ratio of 1.20. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. BCO's industry has an average PEG of 1.93 right now.

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 0.85. This compares to its industry's average P/S of 0.88.

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


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Brink's Company (The) (BCO) - free report >>

Published in