Is Bed Bath & Beyond (BBBY) a Great Value Stock 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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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.

Bed Bath & Beyond (BBBY) is a stock many investors are watching right now. BBBY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 18.47, while its industry has an average P/E of 19.57. Over the past year, BBBY's Forward P/E has been as high as 53.28 and as low as -28.42, with a median of 18.52.

Another valuation metric that we should highlight is BBBY's P/B ratio of 2.66. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 5.83. BBBY's P/B has been as high as 4.58 and as low as 0.64, with a median of 1.66, over the past year.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. BBBY has a P/S ratio of 0.35. This compares to its industry's average P/S of 0.89.

Finally, investors will want to recognize that BBBY has a P/CF ratio of 11.79. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 23.19. BBBY's P/CF has been as high as 17.81 and as low as -172.44, with a median of 7.40, all within the past year.

These are only a few of the key metrics included in Bed Bath & Beyond'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, BBBY looks like an impressive value stock at the moment.

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