Are Investors Undervaluing BrightSphere Investment Group (BSIG) 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.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
BrightSphere Investment Group (BSIG) is a stock many investors are watching right now. BSIG is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 10.81, while its industry has an average P/E of 15.10. Over the past year, BSIG's Forward P/E has been as high as 15.76 and as low as 9.04, with a median of 11.85.
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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. BSIG has a P/S ratio of 1.89. This compares to its industry's average P/S of 2.48.
Finally, investors should note that BSIG has a P/CF ratio of 9.21. 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. This stock's P/CF looks attractive against its industry's average P/CF of 26.87. Over the past year, BSIG's P/CF has been as high as 10.76 and as low as 5.11, with a median of 8.94.
Value investors will likely look at more than just these metrics, but the above data helps show that BrightSphere Investment Group is likely undervalued currently. And when considering the strength of its earnings outlook, BSIG sticks out at as one of the market's strongest value stocks.
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BrightSphere Investment Group Inc. (BSIG) : Free Stock Analysis Report
