Back to top

Image: Bigstock

Are Investors Undervaluing Balfour Beatty (BAFYY) Right Now?

Read MoreHide Full Article

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.

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.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company to watch right now is Balfour Beatty (BAFYY - Free Report) . BAFYY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 10.24. This compares to its industry's average Forward P/E of 16.55. BAFYY's Forward P/E has been as high as 13.24 and as low as 9.06, with a median of 10.48, all within the past year.

Investors should also recognize that BAFYY has a P/B ratio of 1.35. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2.52. Within the past 52 weeks, BAFYY's P/B has been as high as 1.67 and as low as 1.10, with a median of 1.43.

Another great Building Products - Heavy Construction stock you could consider is Vinci (VCISY - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.

Shares of Vinci currently holds a Forward P/E ratio of 11.40, and its PEG ratio is 1.48. In comparison, its industry sports average P/E and PEG ratios of 16.55 and 0.66.

Over the last 12 months, VCISY's P/E has been as high as 14.41, as low as 10.17, with a median of 12.49, and its PEG ratio has been as high as 3.27, as low as 0.56, with a median of 0.86.

Vinci also has a P/B ratio of 2.13 compared to its industry's price-to-book ratio of 2.52. Over the past year, its P/B ratio has been as high as 2.35, as low as 1.68, with a median of 2.16.

These are just a handful of the figures considered in Balfour Beatty and Vinci'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 BAFYY and VCISY is an impressive value stock right now.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Balfour Beatty PLC (BAFYY) - free report >>

Vinci SA (VCISY) - free report >>

Published in