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Is Brink's (BCO) 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.

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 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.

Brink's (BCO) is a stock many investors are watching right now. BCO is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 9.53, which compares to its industry's average of 19.24. Over the past year, BCO's Forward P/E has been as high as 11.61 and as low as 7.88, with a median of 9.50.

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Investors should also recognize that BCO has a P/B ratio of 5.40. 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 13.75. Within the past 52 weeks, BCO's P/B has been as high as 9.13 and as low as 4.38, with a median of 7.38.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. BCO has a P/S ratio of 0.67. This compares to its industry's average P/S of 0.92.

Finally, our model also underscores that BCO has a P/CF ratio of 7.53. 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 15.53. Within the past 12 months, BCO's P/CF has been as high as 8.05 and as low as 5.52, with a median of 6.80.

Another great Outsourcing stock you could consider is Hudson Global (HSON), which is a # 2 (Buy) stock with a Value Score of A.

Shares of Hudson Global currently holds a Forward P/E ratio of 7.46, and its PEG ratio is 0.37. In comparison, its industry sports average P/E and PEG ratios of 19.24 and 1.91.

Over the last 12 months, HSON's P/E has been as high as 16.93, as low as 6.59, with a median of 8.73, and its PEG ratio has been as high as 0.85, as low as 0.33, with a median of 0.44.

Hudson Global sports a P/B ratio of 1.49 as well; this compares to its industry's price-to-book ratio of 13.75. In the past 52 weeks, HSON's P/B has been as high as 2.67, as low as 1.32, with a median of 1.96.

These are only a few of the key metrics included in Brink's and Hudson Global strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, BCO and HSON look like an impressive value stock at the moment.

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Brink's Company (The) (BCO) : Free Stock Analysis Report

Hudson Global, Inc. (HSON) : Free Stock Analysis Report

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