Are Investors Undervaluing Brink's (BCO) 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 value investors might notice is Brink's (BCO). BCO is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 9.46. This compares to its industry's average Forward P/E of 19.01. Over the last 12 months, BCO's Forward P/E has been as high as 11.25 and as low as 7.88, with a median of 9.45.
We should also highlight that BCO has a P/B ratio of 5.40. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 13.80. BCO's P/B has been as high as 9.13 and as low as 4.38, with a median of 7.30, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. BCO has a P/S ratio of 0.67. This compares to its industry's average P/S of 1.22.
Finally, we should also recognize that BCO has a P/CF ratio of 7.53. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 15.51. Over the past year, BCO's P/CF has been as high as 7.94 and as low as 5.52, with a median of 6.80.
Hudson Global (HSON) may be another strong Outsourcing stock to add to your shortlist. HSON is a # 2 (Buy) stock with a Value grade of A.
Hudson Global is trading at a forward earnings multiple of 6.76 at the moment, with a PEG ratio of 0.34. This compares to its industry's average P/E of 19.01 and average PEG ratio of 1.89.
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Brink's Company (The) (BCO) : Free Stock Analysis Report
Hudson Global, Inc. (HSON) : Free Stock Analysis Report
