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Are These Business Services Stocks Undervalued Right Now?
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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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Barrett Business Services (BBSI - Free Report) . BBSI is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 13.96. This compares to its industry's average Forward P/E of 24.08. BBSI's Forward P/E has been as high as 18.20 and as low as -150.87, with a median of 16.24, all within the past year.
Investors should also note that BBSI holds a PEG ratio of 1.16. 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. BBSI's PEG compares to its industry's average PEG of 2.19. Over the last 12 months, BBSI's PEG has been as high as 1.52 and as low as -12.57, with a median of 1.35.
Finally, our model also underscores that BBSI has a P/CF ratio of 12.94. 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. BBSI's current P/CF looks attractive when compared to its industry's average P/CF of 16.86. BBSI's P/CF has been as high as 16.24 and as low as 10.23, with a median of 13.74, all within the past year.
If you're looking for another solid Outsourcing value stock, take a look at Brink's (BCO - Free Report) . BCO is a # 2 (Buy) stock with a Value score of A.
Additionally, Brink's has a P/B ratio of 12.46 while its industry's price-to-book ratio sits at 10.41. For BCO, this valuation metric has been as high as 20.31, as low as 10.50, with a median of 13.28 over the past year.
These are just a handful of the figures considered in Barrett Business Services and Brink's'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 BBSI and BCO is an impressive value stock right now.
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Are These Business Services Stocks Undervalued Right Now?
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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Barrett Business Services (BBSI - Free Report) . BBSI is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 13.96. This compares to its industry's average Forward P/E of 24.08. BBSI's Forward P/E has been as high as 18.20 and as low as -150.87, with a median of 16.24, all within the past year.
Investors should also note that BBSI holds a PEG ratio of 1.16. 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. BBSI's PEG compares to its industry's average PEG of 2.19. Over the last 12 months, BBSI's PEG has been as high as 1.52 and as low as -12.57, with a median of 1.35.
Finally, our model also underscores that BBSI has a P/CF ratio of 12.94. 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. BBSI's current P/CF looks attractive when compared to its industry's average P/CF of 16.86. BBSI's P/CF has been as high as 16.24 and as low as 10.23, with a median of 13.74, all within the past year.
If you're looking for another solid Outsourcing value stock, take a look at Brink's (BCO - Free Report) . BCO is a # 2 (Buy) stock with a Value score of A.
Additionally, Brink's has a P/B ratio of 12.46 while its industry's price-to-book ratio sits at 10.41. For BCO, this valuation metric has been as high as 20.31, as low as 10.50, with a median of 13.28 over the past year.
These are just a handful of the figures considered in Barrett Business Services and Brink's'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 BBSI and BCO is an impressive value stock right now.