Are Investors Undervaluing Brink's (BCO) 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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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.

One company to watch right now is Brink's (BCO). BCO is currently sporting a Zacks Rank #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 13.19. This compares to its industry's average Forward P/E of 16.52. Over the past 52 weeks, BCO's Forward P/E has been as high as 14.25 and as low as 10.42, with a median of 11.83.

Finally, our model also underscores that BCO has a P/CF ratio of 11.14. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 15.03. Over the past 52 weeks, BCO's P/CF has been as high as 12.56 and as low as 7.81, with a median of 9.29.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Brink's is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BCO feels like a great value stock at the moment.

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

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