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Should Value Investors Buy BrightSphere Investment Group (BSIG) 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.

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

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company value investors might notice is BrightSphere Investment Group (BSIG - Free Report) . BSIG is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 10.74, which compares to its industry's average of 15.33. Over the past 52 weeks, BSIG's Forward P/E has been as high as 13.81 and as low as 9.04, with a median of 10.94.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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. BSIG has a P/S ratio of 2. This compares to its industry's average P/S of 2.78.

Finally, we should also recognize that BSIG has a P/CF ratio of 11.39. 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. BSIG's P/CF compares to its industry's average P/CF of 17.08. Within the past 12 months, BSIG's P/CF has been as high as 11.66 and as low as 7.40, with a median of 9.33.

These figures are just a handful of the metrics value investors tend to look at, but they help show that BrightSphere Investment Group is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BSIG feels like a great value stock at the moment.


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