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Is BrightView (BV) Stock 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.

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 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 stock to keep an eye on 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 P/E ratio of 10.14 right now. For comparison, its industry sports an average P/E of 11.54. Over the last 12 months, BV's Forward P/E has been as high as 13.91 and as low as 8.77, with a median of 11.37.

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. BV has a P/S ratio of 0.47. This compares to its industry's average P/S of 0.65.

Finally, our model also underscores that BV has a P/CF ratio of 7.50. 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. BV's P/CF compares to its industry's average P/CF of 12.23. Over the past 52 weeks, BV's P/CF has been as high as 13.03 and as low as 6.26, with a median of 8.15.

If you're looking for another solid Consumer Services - Miscellaneous value stock, take a look at SP Plus (SP - Free Report) . SP is a # 2 (Buy) stock with a Value score of A.

SP Plus also has a P/B ratio of 3.20 compared to its industry's price-to-book ratio of 5.91. Over the past year, its P/B ratio has been as high as 4.16, as low as 2.77, with a median of 3.23.

These are just a handful of the figures considered in BrightView and SP Plus'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 BV and SP is an impressive value stock right now.


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