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Should Value Investors Buy BuildABear Workshop (BBW) Stock?

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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, 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 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 stock to keep an eye on is BuildABear Workshop (BBW - Free Report) . BBW is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 7.96, which compares to its industry's average of 16.75. Over the past year, BBW's Forward P/E has been as high as 9.49 and as low as 4.39, with a median of 6.58.

Finally, investors should note that BBW has a P/CF ratio of 5.80. 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 14.69. Over the past 52 weeks, BBW's P/CF has been as high as 8.05 and as low as 3.11, with a median of 4.59.

Another great Retail - Miscellaneous stock you could consider is DICK'S Sporting Goods (DKS - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.

DICK'S Sporting Goods is trading at a forward earnings multiple of 9.81 at the moment, with a PEG ratio of 1.96. This compares to its industry's average P/E of 16.75 and average PEG ratio of 1.45.

DKS's price-to-earnings ratio has been as high as 10.57 and as low as 5.57, with a median of 9.21, while its PEG ratio has been as high as 2.05 and as low as 0.62, with a median of 1.57, all within the past year.

DICK'S Sporting Goods sports a P/B ratio of 3.88 as well; this compares to its industry's price-to-book ratio of 15.25. In the past 52 weeks, DKS's P/B has been as high as 4.29, as low as 2.61, with a median of 3.77.

These are just a handful of the figures considered in BuildABear Workshop and DICK'S Sporting Goods'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 BBW and DKS is an impressive value stock right now.


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DICK'S Sporting Goods, Inc. (DKS) - free report >>

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