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Is BMC (BMCH) 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.

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 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 to watch right now is BMC . BMCH is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 12.54 right now. For comparison, its industry sports an average P/E of 18.75. Over the past year, BMCH's Forward P/E has been as high as 14.45 and as low as 8.47, with a median of 11.49.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. BMCH has a P/S ratio of 0.39. This compares to its industry's average P/S of 0.51.

Finally, investors should note that BMCH has a P/CF ratio of 7.45. 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. This stock's P/CF looks attractive against its industry's average P/CF of 13.50. Over the past year, BMCH's P/CF has been as high as 9.67 and as low as 5.62, with a median of 6.93.

These are only a few of the key metrics included in BMC'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, BMCH looks like an impressive value stock at the moment.

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