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Is Bridgeline Digital (BLIN) Stock Undervalued Right Now?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

Bridgeline Digital (BLIN - Free Report) is a stock many investors are watching right now. BLIN is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 14.72, while its industry has an average P/E of 19.12. Over the past 52 weeks, BLIN's Forward P/E has been as high as 25.30 and as low as -140.90, with a median of -18.34.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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. BLIN has a P/S ratio of 0.61. This compares to its industry's average P/S of 1.26.

Another great Internet - Services stock you could consider is Trivago (TRVG - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.

Shares of Trivago are currently trading at a forward earnings multiple of 6.82 and a PEG ratio of 0.47 compared to its industry's P/E and PEG ratios of 19.12 and 1.34, respectively.

TRVG's price-to-earnings ratio has been as high as 88.53 and as low as -51.06, with a median of 17.58, while its PEG ratio has been as high as 0.74 and as low as 0.29, with a median of 0.47, all within the past year.

Trivago also has a P/B ratio of 0.87 compared to its industry's price-to-book ratio of 3.80. Over the past year, its P/B ratio has been as high as 1.17, as low as 0.61, with a median of 0.83.

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


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Bridgeline Digital, Inc. (BLIN) - free report >>

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