Should Value Investors Buy BrightView (BV) Stock?
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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is BrightView (BV). BV is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 9.13, which compares to its industry's average of 11.34. Over the last 12 months, BV's Forward P/E has been as high as 13.19 and as low as 6.08, with a median of 8.67.
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. BV has a P/S ratio of 0.25. This compares to its industry's average P/S of 0.47.
Finally, investors will want to recognize that BV has a P/CF ratio of 4.85. 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. BV's current P/CF looks attractive when compared to its industry's average P/CF of 11.42. BV's P/CF has been as high as 7.34 and as low as 2.96, with a median of 4.37, all within the past year.
Investors could also keep in mind SP Plus (SP), an Consumer Services - Miscellaneous stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Additionally, SP Plus has a P/B ratio of 3.43 while its industry's price-to-book ratio sits at 4.39. For SP, this valuation metric has been as high as 3.58, as low as 2.82, with a median of 3.17 over the past year.
These are just a handful of the figures considered in BrightView and SP Plus'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 BV and SP is an impressive value stock right now.
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BrightView Holdings, Inc. (BV) : Free Stock Analysis Report
SP Plus Corporation (SP) : Free Stock Analysis Report
