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

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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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 Babcock International Group (BCKIY - Free Report) . BCKIY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 7.40 right now. For comparison, its industry sports an average P/E of 20.75. BCKIY's Forward P/E has been as high as 9.46 and as low as 6.84, with a median of 7.41, all within the past year.

Another notable valuation metric for BCKIY is its P/B ratio of 2.35. The P/B ratio pits a stock's market value against 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 4.10. Over the past 12 months, BCKIY's P/B has been as high as 2.59 and as low as 1.92, with a median of 2.19.

These are just a handful of the figures considered in Babcock International Group'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 BCKIY is an impressive value stock right now.


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