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Are Investors Undervaluing BG Staffing (BGSF) 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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company value investors might notice is BG Staffing (BGSF - Free Report) . BGSF is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.

We also note that BGSF holds a PEG ratio of 0.70. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. BGSF's industry has an average PEG of 1.83 right now. Over the past 52 weeks, BGSF's PEG has been as high as 0.83 and as low as 0.22, with a median of 0.63.

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. BGSF has a P/S ratio of 0.48. This compares to its industry's average P/S of 0.49.

These are just a handful of the figures considered in BG Staffing'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 BGSF is an impressive value stock right now.


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