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Is Build-A-Bear (BBW) a Great Value Stock Right Now?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

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.

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 Build-A-Bear (BBW - Free Report) . BBW is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.

BBW is also sporting a PEG ratio of 1.51. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. BBW's industry currently sports an average PEG of 2.48. Over the last 12 months, BBW's PEG has been as high as 7 and as low as -5.92, with a median of 4.60.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. BBW has a P/S ratio of 0.27. This compares to its industry's average P/S of 0.53.

These are just a handful of the figures considered in Build-A-Bear's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that BBW is an impressive value stock right now.


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