Is BuildABear Workshop (BBW) Stock Undervalued Right Now?
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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
One stock to keep an eye on is BuildABear Workshop (BBW). BBW is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 9.27. This compares to its industry's average Forward P/E of 16.85. BBW's Forward P/E has been as high as 9.27 and as low as 5.95, with a median of 6.84, all within the past year.
Finally, investors will want to recognize that BBW has a P/CF ratio of 7.51. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 20.02. BBW's P/CF has been as high as 7.51 and as low as 4.66, with a median of 5.77, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that BuildABear Workshop is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BBW feels like a great value stock at the moment.
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Build-A-Bear Workshop, Inc. (BBW) : Free Stock Analysis Report