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Is Bed Bath & Beyond (BBBY) Stock Undervalued Right Now?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 value investors might notice is Bed Bath & Beyond . BBBY 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 7.65. This compares to its industry's average Forward P/E of 13.02. Over the last 12 months, BBBY's Forward P/E has been as high as 10.83 and as low as 3.72, with a median of 7.03.

Investors should also note that BBBY holds a PEG ratio of 1.19. 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. BBBY's PEG compares to its industry's average PEG of 1.27. Over the past 52 weeks, BBBY's PEG has been as high as 9.23 and as low as 1.10, with a median of 6.30.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. BBBY has a P/S ratio of 0.18. This compares to its industry's average P/S of 0.38.

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

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