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Should Value Investors Buy BuildABear Workshop (BBW) Stock?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One stock to keep an eye on is BuildABear Workshop (BBW - Free Report) . BBW is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 7.18 right now. For comparison, its industry sports an average P/E of 12.42. BBW's Forward P/E has been as high as 8.47 and as low as 4.39, with a median of 6.45, all within the past year.

Finally, investors should note that BBW has a P/CF ratio of 6.41. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. BBW's P/CF compares to its industry's average P/CF of 16.76. BBW's P/CF has been as high as 6.41 and as low as 3.11, with a median of 5.38, all within the past year.

Another great Retail - Miscellaneous stock you could consider is The ODP Corporation (ODP - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.

Additionally, The ODP Corporation has a P/B ratio of 1.60 while its industry's price-to-book ratio sits at 11.76. For ODP, this valuation metric has been as high as 1.89, as low as 1.07, with a median of 1.51 over the past year.

These figures are just a handful of the metrics value investors tend to look at, but they help show that BuildABear Workshop and The ODP Corporation are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BBW and ODP feels like a great value stock at the moment.


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