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.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
One stock to keep an eye on is BuildABear Workshop (BBW). BBW is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 17.02. This compares to its industry's average Forward P/E of 17.97. BBW's Forward P/E has been as high as 17.69 and as low as 8.11, with a median of 10.48, all within the past year.
We should also highlight that BBW has a P/B ratio of 6.21. The P/B ratio pits a stock's market value against 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 13.40. Within the past 52 weeks, BBW's P/B has been as high as 6.45 and as low as 3.13, with a median of 4.08.
Finally, investors will want to recognize that BBW has a P/CF ratio of 12.96. 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. BBW's P/CF compares to its industry's average P/CF of 20.50. Over the past year, BBW's P/CF has been as high as 13.45 and as low as 6.56, with a median of 8.05.
These are only a few of the key metrics included in BuildABear Workshop's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, BBW looks like an impressive value stock at the moment.
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Build-A-Bear Workshop, Inc. (BBW): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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