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Is Babcock International Group (BCKIY) Stock Undervalued Right Now?

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company to watch right now is Babcock International Group (BCKIY). BCKIY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 7.27, which compares to its industry's average of 19.83. Over the past 52 weeks, BCKIY's Forward P/E has been as high as 10.27 and as low as 6.84, with a median of 8.47.

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Another notable valuation metric for BCKIY is its P/B ratio of 3.41. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 3.82. Over the past year, BCKIY's P/B has been as high as 5.40 and as low as 3.29, with a median of 4.28.

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

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Zacks Investment Research