Yahoo Finance Should Value Investors Buy Barrett Business Services (BBSI) Stock?
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
Barrett Business Services (BBSI) is a stock many investors are watching right now. BBSI is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 15.11, while its industry has an average P/E of 22.30. Over the past year, BBSI's Forward P/E has been as high as 16.31 and as low as 10.64, with a median of 13.36.
Investors should also note that BBSI holds a PEG ratio of 1.08. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. BBSI's PEG compares to its industry's average PEG of 2.18. BBSI's PEG has been as high as 1.17 and as low as 0.76, with a median of 0.95, all within the past year.
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 0.74. This compares to its industry's average P/S of 1.23.
Finally, our model also underscores that BBSI has a P/CF ratio of 14.15. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 15.91. Over the past year, BBSI's P/CF has been as high as 14.79 and as low as 10.11, with a median of 12.24.
Value investors will likely look at more than just these metrics, but the above data helps show that Barrett Business Services is likely undervalued currently. And when considering the strength of its earnings outlook, BBSI sticks out at as one of the market's strongest value stocks.
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Barrett Business Services, Inc. (BBSI) : Free Stock Analysis Report
