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Is BrightView Holdings (BV) Stock Undervalued 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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 BrightView Holdings (BV - Free Report) . BV is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.

Investors will also notice that BV has a PEG ratio of 0.82. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. BV's industry has an average PEG of 1.12 right now. Within the past year, BV's PEG has been as high as 0.86 and as low as 0.37, with a median of 0.76.

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. BV has a P/S ratio of 0.73. This compares to its industry's average P/S of 0.76.

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


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