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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
Concrete Pumping Holdings (BBCP) is a stock many investors are watching right now. BBCP is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value.
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. BBCP has a P/S ratio of 1.37. This compares to its industry's average P/S of 3.02.
Finally, we should also recognize that BBCP has a P/CF ratio of 5.60. 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 13.14. Over the past 52 weeks, BBCP's P/CF has been as high as 6.45 and as low as 3.49, with a median of 4.73.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Concrete Pumping Holdings is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BBCP feels like a great value stock at the moment.
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CONCRETE PUMPING HOLDINGS, INC. (BBCP): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).