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Is BG Staffing (BGSF) a Great Value Stock Right Now?

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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, value investing is easily one of the most popular ways to find great stocks in any market environment. 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.

One company value investors might notice is BG Staffing (BGSF - Free Report) . BGSF is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 13.79. This compares to its industry's average Forward P/E of 16.75. Over the past year, BGSF's Forward P/E has been as high as 17.14 and as low as 11.98, with a median of 13.73.

Investors should also note that BGSF holds a PEG ratio of 0.69. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. BGSF's PEG compares to its industry's average PEG of 1.17. Within the past year, BGSF's PEG has been as high as 0.86 and as low as 0.60, with a median of 0.69.

Finally, investors will want to recognize that BGSF has a P/CF ratio of 14.55. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. BGSF's current P/CF looks attractive when compared to its industry's average P/CF of 14.84. Over the past year, BGSF's P/CF has been as high as 17.37 and as low as 8.97, with a median of 12.06.

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


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