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Are Investors Undervaluing BrightView (BV) 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, 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 company value investors might notice is BrightView (BV - Free Report) . BV is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 9.64. This compares to its industry's average Forward P/E of 11.72. Over the past 52 weeks, BV's Forward P/E has been as high as 13.19 and as low as 6.08, with a median of 8.84.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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. BV has a P/S ratio of 0.22. This compares to its industry's average P/S of 0.49.

Finally, our model also underscores that BV has a P/CF ratio of 4.31. 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. BV's P/CF compares to its industry's average P/CF of 11.77. BV's P/CF has been as high as 7.50 and as low as 2.96, with a median of 4.46, all within the past year.

Another great Consumer Services - Miscellaneous stock you could consider is SP Plus (SP - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.

Additionally, SP Plus has a P/B ratio of 3.26 while its industry's price-to-book ratio sits at 4.38. For SP, this valuation metric has been as high as 3.58, as low as 2.82, with a median of 3.15 over the past year.

These are only a few of the key metrics included in BrightView and SP Plus strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, BV and SP look like an impressive value stock at the moment.


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