Is BrightView (BV) Stock Undervalued Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 company value investors might notice is BrightView (BV). BV is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. BV has a P/S ratio of 0.53. This compares to its industry's average P/S of 0.66.
Finally, investors will want to recognize that BV has a P/CF ratio of 11.36. 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. BV's P/CF compares to its industry's average P/CF of 14.32. Over the past 52 weeks, BV's P/CF has been as high as 11.53 and as low as 4.83, with a median of 6.10.
Another great Consumer Services - Miscellaneous stock you could consider is H&R Block (HRB), which is a # 1 (Strong Buy) stock with a Value Score of A.
Shares of H&R Block are currently trading at a forward earnings multiple of 12.27 and a PEG ratio of 0.98 compared to its industry's P/E and PEG ratios of 12.03 and 1.05, respectively.
HRB's Forward P/E has been as high as 13.96 and as low as 9.44, with a median of 10.62. During the same time period, its PEG ratio has been as high as 1.12, as low as 0.76, with a median of 0.85.
Additionally, H&R Block has a P/B ratio of 97.88 while its industry's price-to-book ratio sits at 5.43. For HRB, this valuation metric has been as high as 204.65, as low as -58.29, with a median of -9.34 over the past year.
These are only a few of the key metrics included in BrightView and H&R Block strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, BV and HRB look like an impressive value stock at the moment.
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BrightView Holdings, Inc. (BV) : Free Stock Analysis Report
H&R Block, Inc. (HRB) : Free Stock Analysis Report