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Are Investors Undervaluing Bluegreen Vacations (BVH) Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 Bluegreen Vacations . BVH is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.

Investors should also recognize that BVH has a P/B ratio of 2.15. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 3.47. Over the past 12 months, BVH's P/B has been as high as 2.51 and as low as 1.21, with a median of 1.74.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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. BVH has a P/S ratio of 0.89. This compares to its industry's average P/S of 2.55.

These are only a few of the key metrics included in Bluegreen Vacations's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, BVH looks like an impressive value stock at the moment.

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