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Should Value Investors Buy Concrete Pumping Holdings (BBCP) Stock?

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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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company to watch right now is Concrete Pumping Holdings (BBCP - Free Report) . BBCP is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A.

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. BBCP has a P/S ratio of 1.12. This compares to its industry's average P/S of 2.71.

Finally, investors will want to recognize 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 12.74. Over the past 52 weeks, BBCP's P/CF has been as high as 6.45 and as low as 3.49, with a median of 4.73.

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

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