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Are Investors Undervaluing Brink's (BCO) Right Now?
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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.
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 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.
Brink's (BCO - Free Report) is a stock many investors are watching right now. BCO is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 10.87. This compares to its industry's average Forward P/E of 19.63. BCO's Forward P/E has been as high as 10.87 and as low as 8.29, with a median of 9.57, all within the past year.
We should also highlight that BCO has a P/B ratio of 6.66. The P/B is a method of comparing a stock's market value to 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 13.39. Over the past year, BCO's P/B has been as high as 8.52 and as low as 4.38, with a median of 5.24.
Finally, our model also underscores that BCO has a P/CF ratio of 9.64. 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. BCO's current P/CF looks attractive when compared to its industry's average P/CF of 15.48. Over the past 52 weeks, BCO's P/CF has been as high as 9.76 and as low as 6.06, with a median of 8.45.
If you're looking for another solid Outsourcing value stock, take a look at StarTek . SRT is a # 1 (Strong Buy) stock with a Value score of A.
StarTek is currently trading with a Forward P/E ratio of 8.31 while its PEG ratio sits at 0.55. Both of the company's metrics compare favorably to its industry's average P/E of 19.63 and average PEG ratio of 1.84.
SRT's Forward P/E has been as high as 9.47 and as low as 5.22, with a median of 6.54. During the same time period, its PEG ratio has been as high as 0.58, as low as 0.37, with a median of 0.56.
Furthermore, StarTek holds a P/B ratio of 1.02 and its industry's price-to-book ratio is 13.39. SRT's P/B has been as high as 1.04, as low as 0.42, with a median of 0.63 over the past 12 months.
Value investors will likely look at more than just these metrics, but the above data helps show that Brink's and StarTek are likely undervalued currently. And when considering the strength of its earnings outlook, BCO and SRT sticks out as one of the market's strongest value stocks.
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Are Investors Undervaluing Brink's (BCO) Right Now?
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.
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 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.
Brink's (BCO - Free Report) is a stock many investors are watching right now. BCO is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 10.87. This compares to its industry's average Forward P/E of 19.63. BCO's Forward P/E has been as high as 10.87 and as low as 8.29, with a median of 9.57, all within the past year.
We should also highlight that BCO has a P/B ratio of 6.66. The P/B is a method of comparing a stock's market value to 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 13.39. Over the past year, BCO's P/B has been as high as 8.52 and as low as 4.38, with a median of 5.24.
Finally, our model also underscores that BCO has a P/CF ratio of 9.64. 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. BCO's current P/CF looks attractive when compared to its industry's average P/CF of 15.48. Over the past 52 weeks, BCO's P/CF has been as high as 9.76 and as low as 6.06, with a median of 8.45.
If you're looking for another solid Outsourcing value stock, take a look at StarTek . SRT is a # 1 (Strong Buy) stock with a Value score of A.
StarTek is currently trading with a Forward P/E ratio of 8.31 while its PEG ratio sits at 0.55. Both of the company's metrics compare favorably to its industry's average P/E of 19.63 and average PEG ratio of 1.84.
SRT's Forward P/E has been as high as 9.47 and as low as 5.22, with a median of 6.54. During the same time period, its PEG ratio has been as high as 0.58, as low as 0.37, with a median of 0.56.
Furthermore, StarTek holds a P/B ratio of 1.02 and its industry's price-to-book ratio is 13.39. SRT's P/B has been as high as 1.04, as low as 0.42, with a median of 0.63 over the past 12 months.
Value investors will likely look at more than just these metrics, but the above data helps show that Brink's and StarTek are likely undervalued currently. And when considering the strength of its earnings outlook, BCO and SRT sticks out as one of the market's strongest value stocks.