Is Blue Bird (BLBD) 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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company value investors might notice is Blue Bird (BLBD). BLBD is currently holding a Zacks Rank #1 (Strong Buy) and a Value grade of A.

We also note that BLBD holds a PEG ratio of 1.57. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. BLBD's industry has an average PEG of 3.03 right now. Within the past year, BLBD's PEG has been as high as 1.58 and as low as 0.17, with a median of 0.83.

We should also highlight that BLBD has a P/B ratio of 8.5. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 8.62. Over the past 12 months, BLBD's P/B has been as high as 12.82 and as low as 5.28, with a median of 6.96.

Value investors will likely look at more than just these metrics, but the above data helps show that Blue Bird is likely undervalued currently. And when considering the strength of its earnings outlook, BLBD sticks out as one of the market's strongest value stocks.

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This article originally published on Zacks Investment Research (zacks.com).

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