Back to top

Image: Bigstock

Is Brightcove (BCOV) Stock Undervalued Right Now?

Read MoreHide Full Article

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.

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.

Brightcove (BCOV - Free Report) is a stock many investors are watching right now. BCOV is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.

Another notable valuation metric for BCOV is its P/B ratio of 2.27. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 6.20. Over the past year, BCOV's P/B has been as high as 4.27 and as low as 2.09, with a median of 2.73.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. BCOV has a P/S ratio of 1.13. This compares to its industry's average P/S of 1.73.

If you're looking for another solid Internet - Content value stock, take a look at Intellinetics (INLX - Free Report) . INLX is a # 2 (Buy) stock with a Value score of A.

Intellinetics sports a P/B ratio of 2.08 as well; this compares to its industry's price-to-book ratio of 6.20. In the past 52 weeks, INLX's P/B has been as high as 8.25, as low as 1.63, with a median of 2.46.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Brightcove and Intellinetics are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BCOV and INLX feels like a great value stock at the moment.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Brightcove Inc. (BCOV) - free report >>

Intellinetics, Inc. (INLX) - free report >>

Published in