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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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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.
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 company to watch right now is BrightView (BV - Free Report) . BV is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 8.73 right now. For comparison, its industry sports an average P/E of 11.11. 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 8.72.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. BV has a P/S ratio of 0.24. This compares to its industry's average P/S of 0.5.
Finally, investors should note that BV has a P/CF ratio of 4.69. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 12.73. Within the past 12 months, BV's P/CF has been as high as 7.05 and as low as 2.96, with a median of 4.37.
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.
SP Plus also has a P/B ratio of 3.29 compared to its industry's price-to-book ratio of 4.60. Over the past year, its P/B ratio has been as high as 3.58, as low as 2.84, with a median of 3.20.
Value investors will likely look at more than just these metrics, but the above data helps show that BrightView and SP Plus are likely undervalued currently. And when considering the strength of its earnings outlook, BV and SP sticks out as one of the market's strongest value stocks.
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Should Value Investors Buy BrightView (BV) Stock?
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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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.
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 company to watch right now is BrightView (BV - Free Report) . BV is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 8.73 right now. For comparison, its industry sports an average P/E of 11.11. 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 8.72.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. BV has a P/S ratio of 0.24. This compares to its industry's average P/S of 0.5.
Finally, investors should note that BV has a P/CF ratio of 4.69. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 12.73. Within the past 12 months, BV's P/CF has been as high as 7.05 and as low as 2.96, with a median of 4.37.
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.
SP Plus also has a P/B ratio of 3.29 compared to its industry's price-to-book ratio of 4.60. Over the past year, its P/B ratio has been as high as 3.58, as low as 2.84, with a median of 3.20.
Value investors will likely look at more than just these metrics, but the above data helps show that BrightView and SP Plus are likely undervalued currently. And when considering the strength of its earnings outlook, BV and SP sticks out as one of the market's strongest value stocks.