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Should Value Investors Buy Babcock International Group (BCKIY) Stock?

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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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One stock to keep an eye on is Babcock International Group (BCKIY - Free Report) . BCKIY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 7.33. This compares to its industry's average Forward P/E of 19.73. Over the past year, BCKIY's Forward P/E has been as high as 10.27 and as low as 6.84, with a median of 8.47.

Another notable valuation metric for BCKIY is its P/B ratio of 3.73. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. BCKIY's current P/B looks attractive when compared to its industry's average P/B of 3.77. Within the past 52 weeks, BCKIY's P/B has been as high as 5.40 and as low as 3.28, with a median of 4.28.

Value investors will likely look at more than just these metrics, but the above data helps show that Babcock International Group is likely undervalued currently. And when considering the strength of its earnings outlook, BCKIY sticks out at as one of the market's strongest value stocks.


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