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Is Brink's (BCO) Stock Undervalued Right Now?

·2 min read

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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company value investors might notice is Brink's (BCO). BCO is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 14.63, while its industry has an average P/E of 24.27. Over the last 12 months, BCO's Forward P/E has been as high as 19.47 and as low as 10.59, with a median of 15.79.

Finally, we should also recognize that BCO has a P/CF ratio of 15.64. 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. BCO's current P/CF looks attractive when compared to its industry's average P/CF of 15.92. Within the past 12 months, BCO's P/CF has been as high as 19.98 and as low as 9.53, with a median of 15.75.

These are only a few of the key metrics included in Brink's'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, BCO looks like an impressive value stock at the moment.


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