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Is BrightView (BV) a Great Value Stock Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 company value investors might notice is BrightView (BV - Free Report) . BV is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 9.42, which compares to its industry's average of 10.44. Over the past 52 weeks, BV's Forward P/E has been as high as 15.28 and as low as 9.36, with a median of 11.46.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. BV has a P/S ratio of 0.41. This compares to its industry's average P/S of 0.56.

Finally, investors will want to recognize that BV has a P/CF ratio of 6.44. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 11.15. BV's P/CF has been as high as 13.03 and as low as 6.26, with a median of 8.51, all within the past year.

SP Plus (SP - Free Report) may be another strong Consumer Services - Miscellaneous stock to add to your shortlist. SP is a # 2 (Buy) stock with a Value grade of A.

SP Plus also has a P/B ratio of 3.27 compared to its industry's price-to-book ratio of 5.65. Over the past year, its P/B ratio has been as high as 4.20, as low as 2.77, with a median of 3.34.

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


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BrightView Holdings, Inc. (BV) - free report >>

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