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Are Investors Undervaluing BuildABear Workshop (BBW) Right Now?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 stock to keep an eye on is BuildABear Workshop (BBW - Free Report) . BBW is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 7.57 right now. For comparison, its industry sports an average P/E of 11.76. 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 6.70.

Another valuation metric that we should highlight is BBW's P/B ratio of 3.89. The P/B ratio is used to compare a stock's market value with 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 11.49. Over the past year, BBW's P/B has been as high as 4.08 and as low as 2.14, with a median of 2.98.

Finally, our model also underscores that BBW has a P/CF ratio of 6.61. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 15.53. Over the past year, BBW's P/CF has been as high as 6.61 and as low as 3.20, with a median of 5.50.

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.

Shares of The ODP Corporation currently holds a Forward P/E ratio of 8.09, and its PEG ratio is 0.58. In comparison, its industry sports average P/E and PEG ratios of 11.76 and 1.29.


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