Are Investors Undervaluing Babcock International Group (BCKIY) Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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.
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.
One company to watch right now is Babcock International Group (BCKIY). BCKIY 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 7.10. This compares to its industry's average Forward P/E of 20.66. Over the past 52 weeks, BCKIY's Forward P/E has been as high as 10.27 and as low as 6.84, with a median of 8.47.
Another valuation metric that we should highlight is BCKIY's P/B ratio of 3.54. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. BCKIY's current P/B looks attractive when compared to its industry's average P/B of 3.92. Over the past year, BCKIY's P/B has been as high as 5.40 and as low as 3.28, with a median of 4.28.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Babcock International Group is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BCKIY feels like a great value stock at the moment.
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Babcock International Group PLC (BCKIY) : Free Stock Analysis Report
