Yahoo Finance Is Barrett Business Services (BBSI) a Great Value Stock Right Now?
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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
Barrett Business Services (BBSI) is a stock many investors are watching right now. BBSI is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 15.71, which compares to its industry's average of 23.43. Over the last 12 months, BBSI's Forward P/E has been as high as 16.39 and as low as 11.27, with a median of 14.55.
BBSI is also sporting a PEG ratio of 1.12. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. BBSI's PEG compares to its industry's average PEG of 2.53. BBSI's PEG has been as high as 1.17 and as low as 0.80, with a median of 1.04, all within the past year.
We should also highlight that BBSI has a P/B ratio of 4.50. 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 company's current P/B looks solid when compared to its industry's average P/B of 12.26. Over the past year, BBSI's P/B has been as high as 4.69 and as low as 3.20, with a median of 3.76.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. BBSI has a P/S ratio of 0.8. This compares to its industry's average P/S of 1.
Finally, we should also recognize that BBSI has a P/CF ratio of 15.05. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 15.78. Over the past 52 weeks, BBSI's P/CF has been as high as 15.70 and as low as 10.88, with a median of 13.19.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Barrett Business Services is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BBSI feels like a great value stock at the moment.
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Barrett Business Services, Inc. (BBSI) : Free Stock Analysis Report
