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Should Value Investors Buy Bright Scholar (BEDU) Stock?

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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.

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 to watch right now 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 is trading with P/E ratio of 13.66 right now. For comparison, its industry sports an average P/E of 31.20. Over the last 12 months, BEDU's Forward P/E has been as high as 21.84 and as low as 11.05, with a median of 18.63.

Finally, investors will want to recognize that BEDU has a P/CF ratio of 14.90. 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. BEDU's P/CF compares to its industry's average P/CF of 35.72. Over the past 52 weeks, BEDU's P/CF has been as high as 23.25 and as low as 10.58, with a median of 19.59.

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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