Is BrightView (BV) Stock Undervalued Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is BrightView (BV). BV is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 9.96, which compares to its industry's average of 12.12. BV's Forward P/E has been as high as 13.19 and as low as 6.08, with a median of 8.93, all within the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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 0.28. This compares to its industry's average P/S of 0.6.
Finally, investors should note that BV has a P/CF ratio of 5.42. 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. BV's P/CF compares to its industry's average P/CF of 13.87. Over the past year, BV's P/CF has been as high as 6.01 and as low as 2.96, with a median of 4.37.
Investors could also keep in mind Pactiv Evergreen (PTVE), an Consumer Services - Miscellaneous stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Additionally, Pactiv Evergreen has a P/B ratio of 1.19 while its industry's price-to-book ratio sits at 4.18. For PTVE, this valuation metric has been as high as 1.72, as low as 0.87, with a median of 1.22 over the past year.
These are only a few of the key metrics included in BrightView and Pactiv Evergreen strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, BV and PTVE look like an impressive value stock at the moment.
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BrightView Holdings, Inc. (BV) : Free Stock Analysis Report
Pactiv Evergreen Inc. (PTVE) : Free Stock Analysis Report
