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Should Value Investors Buy Bright Scholar (BEDU) Stock?

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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.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 value investors might notice is Bright Scholar (BEDU - Free Report) . BEDU is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 13.27, while its industry has an average P/E of 32.02. Over the last 12 months, BEDU's Forward P/E has been as high as 22.17 and as low as 11.05, with a median of 18.86.

Finally, we should also recognize that BEDU has a P/CF ratio of 13.04. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. BEDU's P/CF compares to its industry's average P/CF of 35.72. BEDU's P/CF has been as high as 23.72 and as low as 10.58, with a median of 20.02, all within the past year.

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


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