UK Markets open in 5 hrs 58 mins

Are Investors Undervaluing Balfour Beatty PLC (BAFYY) Right Now?

Zacks Equity Research

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.

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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company value investors might notice is Balfour Beatty PLC (BAFYY). BAFYY 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 11.53, which compares to its industry's average of 13.02. Over the past 52 weeks, BAFYY's Forward P/E has been as high as 13.23 and as low as 6.36, with a median of 9.52.

Another notable valuation metric for BAFYY is its P/B ratio of 1.17. The P/B ratio pits a stock's market value against 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 1.80. Within the past 52 weeks, BAFYY's P/B has been as high as 1.56 and as low as 0.83, with a median of 1.25.

These are just a handful of the figures considered in Balfour Beatty PLC'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 BAFYY is an impressive value stock right now.


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
 
Balfour Beatty PLC (BAFYY) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.