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Should Value Investors Buy Barrett Business Services (BBSI) Stock?
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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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 stock to keep an eye on is Barrett Business Services (BBSI - Free Report) . BBSI is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 13.33. This compares to its industry's average Forward P/E of 18.64. BBSI's Forward P/E has been as high as 14.23 and as low as 10.64, with a median of 12.78, all within the past year.
Investors will also notice that BBSI has a PEG ratio of 0.95. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. BBSI's industry has an average PEG of 1.70 right now. BBSI's PEG has been as high as 1.02 and as low as 0.76, with a median of 0.91, all within the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. BBSI has a P/S ratio of 0.64. This compares to its industry's average P/S of 0.68.
Finally, investors should note that BBSI has a P/CF ratio of 12.60. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 14.89. BBSI's P/CF has been as high as 13.56 and as low as 10.11, with a median of 11.81, all within the past year.
Another great Outsourcing stock you could consider is Brink's (BCO - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Brink's sports a P/B ratio of 5.25 as well; this compares to its industry's price-to-book ratio of 12.30. In the past 52 weeks, BCO's P/B has been as high as 9.13, as low as 4.38, with a median of 5.15.
These are only a few of the key metrics included in Barrett Business Services and Brink's strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, BBSI and BCO look like an impressive value stock at the moment.
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Should Value Investors Buy Barrett Business Services (BBSI) Stock?
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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 stock to keep an eye on is Barrett Business Services (BBSI - Free Report) . BBSI is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 13.33. This compares to its industry's average Forward P/E of 18.64. BBSI's Forward P/E has been as high as 14.23 and as low as 10.64, with a median of 12.78, all within the past year.
Investors will also notice that BBSI has a PEG ratio of 0.95. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. BBSI's industry has an average PEG of 1.70 right now. BBSI's PEG has been as high as 1.02 and as low as 0.76, with a median of 0.91, all within the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. BBSI has a P/S ratio of 0.64. This compares to its industry's average P/S of 0.68.
Finally, investors should note that BBSI has a P/CF ratio of 12.60. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 14.89. BBSI's P/CF has been as high as 13.56 and as low as 10.11, with a median of 11.81, all within the past year.
Another great Outsourcing stock you could consider is Brink's (BCO - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Brink's sports a P/B ratio of 5.25 as well; this compares to its industry's price-to-book ratio of 12.30. In the past 52 weeks, BCO's P/B has been as high as 9.13, as low as 4.38, with a median of 5.15.
These are only a few of the key metrics included in Barrett Business Services and Brink's strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, BBSI and BCO look like an impressive value stock at the moment.