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Should Value Investors Buy Bluegreen Vacations (BVH) Stock?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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.

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 to watch right now is Bluegreen Vacations . BVH is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 8.54. This compares to its industry's average Forward P/E of 24.23. Over the past 52 weeks, BVH's Forward P/E has been as high as 10.08 and as low as 4.01, with a median of 6.89.

Another notable valuation metric for BVH is its P/B ratio of 2.47. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. BVH's current P/B looks attractive when compared to its industry's average P/B of 3.83. Over the past 12 months, BVH's P/B has been as high as 2.47 and as low as 0.98, with a median of 1.66.

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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. BVH has a P/S ratio of 0.68. This compares to its industry's average P/S of 1.15.

If you're looking for another solid Leisure and Recreation Services value stock, take a look at Caesars Entertainment (CZR - Free Report) . CZR is a # 2 (Buy) stock with a Value score of A.

Additionally, Caesars Entertainment has a P/B ratio of 2.91 while its industry's price-to-book ratio sits at 3.83. For CZR, this valuation metric has been as high as 3.15, as low as 1.78, with a median of 2.65 over the past year.

Value investors will likely look at more than just these metrics, but the above data helps show that Bluegreen Vacations and Caesars Entertainment are likely undervalued currently. And when considering the strength of its earnings outlook, BVH and CZR sticks out as one of the market's strongest value stocks.


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