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Is BG Staffing (BGSF) a Great Value Stock Right Now?

Zacks Equity Research
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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.

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 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.

BG Staffing (BGSF) is a stock many investors are watching right now. BGSF is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 10.75. This compares to its industry's average Forward P/E of 12.20. Over the past year, BGSF's Forward P/E has been as high as 17.14 and as low as 9.94, with a median of 13.93.

We also note that BGSF holds a PEG ratio of 0.54. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. BGSF's PEG compares to its industry's average PEG of 0.96. Within the past year, BGSF's PEG has been as high as 0.86 and as low as 0.50, with a median of 0.70.

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


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