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Should Value Investors Buy Concrete Pumping Holdings (BBCP) 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.

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.

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 company to watch right now is Concrete Pumping Holdings (BBCP - Free Report) . BBCP is currently sporting a Zacks Rank #2 (Buy) and an A for Value.

We should also highlight that BBCP has a P/B ratio of 1.43. 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 company's current P/B looks solid when compared to its industry's average P/B of 4.25. Within the past 52 weeks, BBCP's P/B has been as high as 1.72 and as low as 0.91, with a median of 1.24.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. BBCP has a P/S ratio of 1.33. This compares to its industry's average P/S of 2.87.

Finally, our model also underscores that BBCP has a P/CF ratio of 5.60. 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. BBCP's current P/CF looks attractive when compared to its industry's average P/CF of 12.87. Within the past 12 months, BBCP's P/CF has been as high as 6.45 and as low as 3.49, with a median of 4.73.

These are only a few of the key metrics included in Concrete Pumping Holdings's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, BBCP looks like an impressive value stock at the moment.

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