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Is BuildABear Workshop (BBW) Stock Undervalued Right Now?

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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.

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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 company value investors might notice is BuildABear Workshop (BBW - Free Report) . BBW is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 7.58, while its industry has an average P/E of 12.50. Over the past 52 weeks, BBW's Forward P/E has been as high as 8.47 and as low as 4.50, with a median of 6.52.

Finally, our model also underscores that BBW has a P/CF ratio of 6.43. 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 16.60. BBW's P/CF has been as high as 6.43 and as low as 3.20, with a median of 5.42, all within the past year.

Investors could also keep in mind The ODP Corporation (ODP - Free Report) , an Retail - Miscellaneous stock with a Zacks Rank of # 2 (Buy) and Value grade of A.

Additionally, The ODP Corporation has a P/B ratio of 1.59 while its industry's price-to-book ratio sits at 12.29. For ODP, this valuation metric has been as high as 1.89, as low as 1.07, with a median of 1.53 over the past year.

These are just a handful of the figures considered in BuildABear Workshop and The ODP Corporation'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 BBW and ODP is an impressive value stock right now.


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