Are Investors Undervaluing Adecco (AHEXY) Right Now?
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
Adecco (AHEXY) is a stock many investors are watching right now. AHEXY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 11.30. This compares to its industry's average Forward P/E of 23.04. AHEXY's Forward P/E has been as high as 13.67 and as low as -290.52, with a median of 8.97, all within the past year.
Finally, investors should note that AHEXY has a P/CF ratio of 7.09. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. AHEXY's current P/CF looks attractive when compared to its industry's average P/CF of 16.27. AHEXY's P/CF has been as high as 9.60 and as low as 5.50, with a median of 7.08, all within the past year.
If you're looking for another solid Outsourcing value stock, take a look at Barrett Business Services (BBSI). BBSI is a # 1 (Strong Buy) stock with a Value score of A.
Barrett Business Services is currently trading with a Forward P/E ratio of 12.85 while its PEG ratio sits at 0.92. Both of the company's metrics compare favorably to its industry's average P/E of 23.04 and average PEG ratio of 2.17.
Over the last 12 months, BBSI's P/E has been as high as 15.12, as low as -150.87, with a median of 12.59, and its PEG ratio has been as high as 1.26, as low as -12.57, with a median of 0.92.
Furthermore, Barrett Business Services holds a P/B ratio of 3.76 and its industry's price-to-book ratio is 15.10. BBSI's P/B has been as high as 4.04, as low as 2.11, with a median of 2.96 over the past 12 months.
Value investors will likely look at more than just these metrics, but the above data helps show that Adecco and Barrett Business Services are likely undervalued currently. And when considering the strength of its earnings outlook, AHEXY and BBSI sticks out as one of the market's strongest value stocks.
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Adecco SA (AHEXY) : Free Stock Analysis Report
Barrett Business Services, Inc. (BBSI) : Free Stock Analysis Report
