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Are Investors Undervaluing BuildABear Workshop (BBW) 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.

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 holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 6.21, which compares to its industry's average of 16.04. Over the last 12 months, BBW's Forward P/E has been as high as 8.47 and as low as 4.39, with a median of 6.49.

Finally, our model also underscores that BBW has a P/CF ratio of 5.36. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. BBW's current P/CF looks attractive when compared to its industry's average P/CF of 19.85. Over the past year, BBW's P/CF has been as high as 6.39 and as low as 3.11, with a median of 4.69.

If you're looking for another solid Retail - Miscellaneous value stock, take a look at DICK'S Sporting Goods (DKS - Free Report) . DKS is a # 2 (Buy) stock with a Value score of A.

Shares of DICK'S Sporting Goods are currently trading at a forward earnings multiple of 10.45 and a PEG ratio of 1.92 compared to its industry's P/E and PEG ratios of 16.04 and 0.35, respectively.

Over the last 12 months, DKS's P/E has been as high as 12.41, as low as 5.57, with a median of 9.61, and its PEG ratio has been as high as 2.48, as low as 1.11, with a median of 1.90.

DICK'S Sporting Goods also has a P/B ratio of 4.64 compared to its industry's price-to-book ratio of 26.68. Over the past year, its P/B ratio has been as high as 4.87, as low as 2.61, with a median of 3.98.

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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