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Is TrueBlue (TBI) Stock Undervalued 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.

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.

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 company value investors might notice is TrueBlue (TBI - Free Report) . TBI is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.

Another valuation metric that we should highlight is TBI's P/B ratio of 1.70. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. TBI's current P/B looks attractive when compared to its industry's average P/B of 1.74. Over the past year, TBI's P/B has been as high as 1.83 and as low as 0.79, with a median of 1.42.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. TBI has a P/S ratio of 0.4. This compares to its industry's average P/S of 0.55.

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


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