Are Investors Undervaluing Barrett Business Services (BBSI) Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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.
Barrett Business Services (BBSI) is a stock many investors are watching right now. BBSI is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock holds a P/E ratio of 13.72, while its industry has an average P/E of 24.84. Over the last 12 months, BBSI's Forward P/E has been as high as 15.12 and as low as -150.87, with a median of 12.59.
Investors should also note that BBSI holds a PEG ratio of 0.98. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. BBSI's PEG compares to its industry's average PEG of 2.34. Over the last 12 months, BBSI's PEG has been as high as 1.26 and as low as -12.57, with a median of 0.95.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. BBSI has a P/S ratio of 0.66. This compares to its industry's average P/S of 0.99.
Finally, our model also underscores that BBSI has a P/CF ratio of 13.40. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. BBSI's P/CF compares to its industry's average P/CF of 17.46. Within the past 12 months, BBSI's P/CF has been as high as 13.90 and as low as 10.22, with a median of 11.57.
Investors could also keep in mind Brink's (BCO), an Outsourcing stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Furthermore, Brink's holds a P/B ratio of 8.69 and its industry's price-to-book ratio is 16.21. BCO's P/B has been as high as 14.16, as low as 6.33, with a median of 8.28 over the past 12 months.
These are just a handful of the figures considered in Barrett Business Services and Brink's's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that BBSI and BCO is an impressive value stock right now.
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Barrett Business Services, Inc. (BBSI) : Free Stock Analysis Report
Brink's Company The (BCO) : Free Stock Analysis Report
