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Is Brink's (BCO) a Great Value Stock 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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 Brink's (BCO). BCO is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 9.41, while its industry has an average P/E of 24.98. Over the past year, BCO's Forward P/E has been as high as 15.19 and as low as 8.98, with a median of 11.64.

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Another notable valuation metric for BCO is its P/B ratio of 7.31. 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 stock's P/B looks solid versus its industry's average P/B of 12.75. Over the past year, BCO's P/B has been as high as 14.16 and as low as 6.96, with a median of 12.53.

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. BCO has a P/S ratio of 0.62. This compares to its industry's average P/S of 1.01.

Finally, our model also underscores that BCO has a P/CF ratio of 6.78. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 17.33. Over the past 52 weeks, BCO's P/CF has been as high as 15.27 and as low as 6.46, with a median of 9.90.

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 7.82 at the moment, with a PEG ratio of 0.39. This compares to its industry's average P/E of 24.98 and average PEG ratio of 2.37.


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