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Is BrightSphere Investment Group (BSIG) a Great Value Stock 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.

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 BrightSphere Investment Group (BSIG - Free Report) . BSIG is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 9.88 right now. For comparison, its industry sports an average P/E of 14.73. Over the past year, BSIG's Forward P/E has been as high as 12.92 and as low as 9.04, with a median of 10.83.

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 1.94. This compares to its industry's average P/S of 2.56.

Finally, our model also underscores that BSIG has a P/CF ratio of 10.45. 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. BSIG's current P/CF looks attractive when compared to its industry's average P/CF of 22.28. Over the past year, BSIG's P/CF has been as high as 11.66 and as low as 7.40, with a median of 9.80.

Value investors will likely look at more than just these metrics, but the above data helps show that BrightSphere Investment Group is likely undervalued currently. And when considering the strength of its earnings outlook, BSIG sticks out at as one of the market's strongest value stocks.


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