U.S. Markets closed

Should Value Investors Buy Barrett Business Services (BBSI) Stock?

Zacks Equity Research

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.

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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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.

One stock to keep an eye on is Barrett Business Services (BBSI). BBSI is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 15.53. This compares to its industry's average Forward P/E of 23.48. Over the past 52 weeks, BBSI's Forward P/E has been as high as 19.62 and as low as 10.05, with a median of 13.85.

Investors should also recognize that BBSI has a P/B ratio of 5.28. 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. BBSI's current P/B looks attractive when compared to its industry's average P/B of 7.85. Over the past 12 months, BBSI's P/B has been as high as 8.39 and as low as 3.45, with a median of 4.83.

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. BBSI has a P/S ratio of 0.67. This compares to its industry's average P/S of 1.24.

Finally, investors should note that BBSI has a P/CF ratio of 12.89. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. BBSI's current P/CF looks attractive when compared to its industry's average P/CF of 18.11. Within the past 12 months, BBSI's P/CF has been as high as 22.52 and as low as 10.03, with a median of 12.84.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Barrett Business Services is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BBSI feels like a great value stock at the moment.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Barrett Business Services, Inc. (BBSI) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research

  • Business
    Financial Times

    ‘Their house is on fire’: the pension crisis sweeping the world

    Jan-Pieter Jansen, a 77-year-old retiree from the Netherlands, had high hopes for a worry-free retirement after having saved diligently into a pension during his working life. “This is causing me a lot of stress,” says Mr Jansen, who retired 17 years ago and hoped to use his pension pot to treat his grandchildren and afford good hotels on holidays. Mr Jansen is not alone in experiencing pension pain.

  • Politics
    Financial Times

    FBI tried to warn BofA against ill-fated buyout

    The FBI tried to warn Bank of America against an ill-fated leveraged buyout led by former Blackstone dealmaker Chinh Chu, telling an executive that “the entire transaction was setting alarms off, and there was a concern that someone was attempting to defraud” the bank. BofA faces steep potential losses after ignoring the warnings about now-bankrupt Constellation Healthcare Technologies, which are detailed in FBI files made public by a federal court last week. It was the first acquisition for his investment vehicle CC Capital, which he created after ending his 25-year stint working on multibillion-dollar transactions.

  • Finance
    Oilprice.com

    17-Year Old Genius Gets Google Prize For Renewable Energy Breakthrough

    Each year Google hold an international science fair for innovative teens to solve a problem they care about with science. The breakthroughs coming from these young, driven researchers have been as far-ranging and impactful as a method of pulling microplastics out of ocean waters (this year's grand prize winner) to sensors that help mitigate risk for ambulatory Alzheimer's' patients (the grand prize winner from 2014). According to facts and figures from non-profit organization The Water Project, there are 783 million people worldwide--that's about one in nine individuals globally--that do not have access to clean drinking water, and one out of every five deaths of children under five years old is directly caused by a water-related disease.

  • It’s great the stock market is setting records, but it’s not because the economy is great
    Business
    MarketWatch

    It’s great the stock market is setting records, but it’s not because the economy is great

    Stocks on Wall Street have soared to fresh record highs, but it's not because the economy is flashing a big thumbs-up sign. The economy is still expanding, to be sure, and sporadic worries about recession have faded again. More evidence of a slowdown emerged in a pair of recent reports on industrial production and retail sales — windows into how businesses and consumers are faring.

  • Exclusive: American Airlines flight attendants union president under fire over 737 Max comments
    Business
    American City Business Journals

    Exclusive: American Airlines flight attendants union president under fire over 737 Max comments

    The president of the union which represents flight attendants for American Airlines is coming under fire for saying union members haven't been financially impacted by the grounding of the 737 Max. Lori Bassani, president of the Association of Professional Flight Attendants which represents 28,000 American Airlines Group, Inc. (Nasdaq: AAL) flight attendants, has been asked by a union board member to resign, according to emails obtained by the Dallas Business Journal. On Thursday, Bassani told the Business Journal that unlike other aviation employee groups, the APFA will not sue Boeing Co. (NYSE: BA) seeking damages for lost wages.

  • Business
    U.S.News & World Report

    7 Low-Risk Dividend Stocks to Buy for Retirees

    By definition, the dividend aristocrats -- a group of S&P 500 companies that have raised their dividend payouts annually for 25 years or more -- should be good candidates for low-risk dividend stocks to buy. Like JNJ, Chevron falls into that category, with 33 straight years of dividend growth. Today Chevron rewards investors with a healthy 3.9% yield, and while share price gains have been pretty pedestrian in recent years, the integrated oil and gas major does have to deal with energy prices that have been depressed since the 2014 oil crash.

  • Business
    GuruFocus.com

    Top Insider Buys Highlight for the Week of Nov. 15

    The largest insider buys this week were for Crown Castle International Corp. (NYSE:CCI), Uber Technologies Inc. (NYSE:UBER), Keurig Dr Pepper Inc. (NYSE:KDP) and Occidental Petroleum Corp. (NYSE:OXY). GuruFocus has detected 9 Warning Signs with CCI. Crown Castle International is an American wireless communication services company.

  • Why Rich Investors Are Bracing for a Steep Sell-Off as Turmoil Looms
    Business
    Investopedia

    Why Rich Investors Are Bracing for a Steep Sell-Off as Turmoil Looms

    Bullish buyers have sent the S&P 500 Index soaring to a series of record highs this month, but wealthy investors are bracing for a significant market decline by the end of 2020, and now hold, on average, 25% of their assets in cash, according to a worldwide survey by UBS Global Wealth Management that drew more than 3,400 responses. “The rapidly changing geopolitical environment is the biggest concern for investors around the world,” as Paula Polito, client strategy officer at UBS GWM, observed in a statement. UBS polled investors with $1 million or more in investable assets, which include cash and marketable securities, but exclude residences and personal property.

  • Hedge Funds Open Kimono: Here Are Their Top 5 Large-Cap Stock Picks
    Business
    Insider Monkey

    Hedge Funds Open Kimono: Here Are Their Top 5 Large-Cap Stock Picks

    Yesterday we published the list of 30 most popular stocks among hedge funds. This list's top 20 stock picks have been performing much better than the market indices that you see on your financial news websites and channels. In 2019 the top 20 most popular hedge fund stocks returned nearly 34% and outperformed the S&P 500 Index by more than 8 percentage points.

  • 'As for the President, God Bless His Heart.' Louisiana's Democratic Gov. John Bel Edwards Wins Re-Election
    Politics
    Meredith Videos

    'As for the President, God Bless His Heart.' Louisiana's Democratic Gov. John Bel Edwards Wins Re-Election

    Deep in the heart of the conservative South, Louisiana's voters reelected Democratic Gov. John Bel Edwards to a second term

  • 2 Stocks You Really Should Consider Shorting This Week
    Business
    TheStreet.com

    2 Stocks You Really Should Consider Shorting This Week

    Using recent actions and grades from TheStreet's Quant Ratings and layering on technical analysis of the charts of those stocks, Trifecta Stocks identifies five names each Friday that look bearish. While we will not be weighing in with fundamental analysis we hope this piece will give investors interested in stocks on the way down a good starting point to do further homework on the names. Fossil Group Inc. recently was downgraded to Sell with a D rating by TheStreet's Quant Ratings.

  • Politics
    Politico

    Sanders and Warren want to tax the rich. Here’s why their plans could work.

    Elizabeth Warren and Bernie Sanders have been facing charges that the proposals won't work. Critics of the Warren (D-Mass.) and Sanders (I-Vt.) plans say it's too hard to figure out how much wealth there is in the U.S., and they point out that wealth taxes failed in Europe. It didn't work in Europe, so why will it work here?

  • Hedge Funds Open Kimono: 5 Best Healthcare Stocks To Buy
    Business
    Insider Monkey

    Hedge Funds Open Kimono: 5 Best Healthcare Stocks To Buy

    Every quarter we process around 750 hedge funds' 13F filings to identify each hedge fund's new moves, top stock picks, and more importantly overall sentiment changes towards each of the 4000 stocks that are publicly trading. We publish all of our analysis in our premium quarterly newsletter (download a free sample), and then share interesting bits and pieces on our website. Yesterday we published the list of 30 most popular stocks among hedge funds.

  • How Gen X is preparing for retirement
    Business
    Yahoo Finance Video

    How Gen X is preparing for retirement

    A survey by Harness Wealth shows that Gen-X is anxious about their finances and find them complex. Harness Wealth's co-founder Katie Prentke English joined The Final Round to discuss. This segment is brought to you by Fidelity Investments.

  • Business
    TheStreet.com

    HP's Board Rejects Xerox Bid

    HP Inc. HPQ said Sunday that its board "unanimously rejected" Xerox's unsolicited bid earlier this month to buy the company. "Our Board of Directors has reviewed and considered your unsolicited proposal dated November 5, 2019 at a meeting with our financial and legal advisors and has unanimously concluded that it significantly undervalues HP and is not in the best interests of HP shareholders.

  • Marijuana Stocks Are Tumbling — Are Any Good Buys Right Now?
    Business
    Investor's Business Daily

    Marijuana Stocks Are Tumbling — Are Any Good Buys Right Now?

    Marijuana stocks received enormous hype after legal recreational sales took hold in Canada and sales became legal in some form or another across more than half of the U.S. Producers in Canada listed on the big U.S. exchanges, while their U.S. counterparts sought listings in Canada. Are any marijuana stocks on major U.S. exchanges a good buy now? Overall, the marijuana industry is showing little profit growth as weed producers burn through money to expand.

  • Estimating The Intrinsic Value Of Cisco Systems, Inc. (NASDAQ:CSCO)
    Business
    Simply Wall St.

    Estimating The Intrinsic Value Of Cisco Systems, Inc. (NASDAQ:CSCO)

    In this article we are going to estimate the intrinsic value of Cisco Systems, Inc. (NASDAQ:CSCO) by taking the expected future cash flows and discounting them to today's value. We generally believe that a company's value is the present value of all of the cash it will generate in the future. If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in the Simply Wall St analysis model.

  • Too Rich for a Roth? Do This
    Business
    Investopedia

    Too Rich for a Roth? Do This

    For 2020 Roth IRA contributions are not allowed for single filers with a modified adjusted gross income (MAGI) of $139,000 (up from $137k in 2019) or more and married couples filing jointly whose MAGI exceeds $206,000 (up from $203k in 2019). A Roth IRA allows for tax-free qualified distributions in retirement, which may be invaluable if you anticipate landing in a high tax bracket when you retire. Fortunately, there is an available solution to the Roth IRA roadblock for affluent taxpayers: a backdoor Roth IRA.

  • Canada Pension Plan (CPP) vs. U.S. Social Security
    Business
    Investopedia

    Canada Pension Plan (CPP) vs. U.S. Social Security

    Canada Pension Plan Benefits Similar to the U.S. Social Security system, the Canada Pension Plan provides several types of benefits: Retirement pension. You can start full CPP retirement benefits at age 65. You can get a permanently reduced amount as early as age 60, or as late as age 70 with a permanent increase.

  • How Much Are Taxes on an IRA Withdrawal?
    Business
    Investopedia

    How Much Are Taxes on an IRA Withdrawal?

    How much you will pay in taxes on an individual retirement account (IRA) withdrawal depends on the type of IRA, your age, and the purpose of the withdrawal. In other cases, you owe income tax on the money you withdraw and sometimes an additional penalty if you withdraw funds before age 59½. There are a number of IRA options and a variety of places to get these account types, but the Roth IRA and the traditional IRA are by far the most widely held types.

  • Americans are choosing not to retire — but not for the reasons you think
    Business
    Yahoo Finance

    Americans are choosing not to retire — but not for the reasons you think

    As retirement looms for many Americans, some are deciding to take a retirement hiatus or not retire at all — but not for the reasons you think. According to a new survey by TD Ameritrade, there are many Americans between the ages of 40-70, who are not retiring even though they are financially able to because they enjoy the routine, it staves off depression, or are pursing a new dream. TD Ameritrade polled 2,000 adults for its survey.

  • How Social Security Works for the Self-Employed
    Business
    Investopedia

    How Social Security Works for the Self-Employed

    However, instead of withholding Social Security taxes from each paycheck—many self-employed people don't get regular paychecks, after all—you pay all the Social Security taxes on your earnings, both your personal contribution and your business' contribution, when you file your annual federal income tax return. Schedule SE, Self-Employment Tax, is where you report your business' net profit or loss as calculated on Schedule C. The federal government uses this information to calculate the Social Security benefits you'll be entitled to later.

  • Business
    Barrons.com

    What Is Your Capital Gains Tax Rate? Good Question — It Can Get Confusing

    Here's what you need to know about the federal income tax rates on capital gains tax (and dividends) under the current rules, which are scheduled to last through 2025 (political developments permitting). rates and brackets for LTCGs and dividends The TCJA retained the 0%, 15%, and 20% rates on LTCGs from assets that you've owned for more than one year and for qualified dividends. However, these rates now have their own brackets that are no longer tied to ordinary income brackets.

  • 3 Monster Growth Stocks That Can Move Even Higher
    Business
    TipRanks

    3 Monster Growth Stocks That Can Move Even Higher

    One thing is clear: investors are constantly searching for serious growth names. For investors that have settled on this strategy, what's the best way to find these tickers with growth prospects that go above and beyond? The platform's Stock Screener tool simplified our research process by allowing us to filter our search results by analyst consensus and upside potential from the current share price.

  • Roth IRA Contributions with No Job?
    Business
    Investopedia

    Roth IRA Contributions with No Job?

    The IRS gets a little grumpy if you contribute to a Roth IRA without what it calls earned income. The good news is that you don't necessarily need a formal job to contribute to a Roth IRA. Although it's not true in all cases, if you're paying taxes on any type of income from working, there's a good chance that you can make Roth IRA contributions.