Yahoo Finanzas Should Value Investors Buy Barrett Business Services (BBSI) Stock?
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 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.
One company value investors might notice is Barrett Business Services (BBSI). BBSI is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 15.76, while its industry has an average P/E of 22.53. Over the last 12 months, BBSI's Forward P/E has been as high as 16.31 and as low as 10.64, with a median of 13.16.
We also note that BBSI holds a PEG ratio of 1.13. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. BBSI's industry currently sports an average PEG of 2.19. Over the last 12 months, BBSI's PEG has been as high as 1.17 and as low as 0.76, with a median of 0.94.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. 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 0.77. This compares to its industry's average P/S of 1.13.
Finally, investors should note that BBSI has a P/CF ratio of 14.67. 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 current P/CF looks attractive when compared to its industry's average P/CF of 16.05. Over the past 52 weeks, BBSI's P/CF has been as high as 14.77 and as low as 10.11, with a median of 12.09.
These are just a handful of the figures considered in Barrett Business Services'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 is an impressive value stock right now.
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Barrett Business Services, Inc. (BBSI) : Free Stock Analysis Report
