Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 6 stocks made the list for top value stocks in the Business Support Services industry. Those looking for value stocks to add to their portfolio may want to use this list as a starting point for further investment research.

Latest Business Support Services Stock News

Before choosing which top Business Support Services stock to buy, be sure to conduct proper due diligence: analyze various financial metrics and look at historical data, public statements and news coverage.

The fundamental outlook for the business support services industry is neutral. Participants across the sub-industry carry out a wide scope of applications, including payments for goods and services, human resource (HR) payroll processing, and outsourcing. A variety of factors including inflation, pandemic-related impacts and geopolitical tensions have created a difficult set of obstacles for companies to maneuver. However, companies have largely recovered from pandemic-related impacts. Companies overly exposed to consumer groups have experienced larger inflationary pressures. Contractionary measures such as the Federal Reserve continuing to raise interest rates could further dampen consumer spending. It will be important that no other exogenous events emerge, such as intensified geopolitical conflicts disrupting the ongoing recovery in TPV (third party verification), employment levels, etc. Underlying payment economics likely flip to tailwinds as value-added services (VAS) revenue lines help fill the void and provide a “cushion” for upside, especially if other verticals or regions temporarily relax in the interim.

Why Focus on Undervalued Business Support Services Stocks?

Value investors seek to buy stocks at a discount to their intrinsic value. Long-term returns show that such strategies are advantageous. Value stocks, as a group, tend to outperform growth stocks over extended periods of time. Typically, value investors perform financial analysis of numerous metrics, don’t follow the herd and are long-term investors.

AAII’s A+ Investor Value Grade is derived from a stock’s Value Score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

What Goes Into AAII’s Value Grade?

Stock evaluation requires access to huge amounts of data as well as the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movement. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors with that task.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for more than just value. It is possible for a stock to appear cheap based on one valuation metric but appear expensive on another. It is also possible for one valuation ratio to be associated with outperforming stocks during certain periods of time but not others. Some stocks may even have null values for certain metrics like the price-earnings ratio or the price-to-book ratio but not others. An example of this would be a company with losses instead of profits or a negative book value because of heavy borrowing. Negative earnings or book value result in non-meaningful ratios that are left blank or null.

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6 Undervalued Business Support Services Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 6 undervalued stocks in the Business Support Services industry for Friday, November 24, 2023. Let’s take a closer look at their individual scores to see how they measure up against each other and the Business Support Services industry median.

The Value Grade is assigned based on how each stock’s composite valuation compares to all other stocks.

The process for assigning grades starts with each variable for a given stock. The percentile rankings for all valid ratios that a stock has are calculated. So, for instance, a stock could have a price-to-book ranking in the 43rd percentile, a price-earnings ranking in the 67th percentile, a price-to-sales ranking in the 23rd percentile, etc. Then, those rankings are averaged for each stock. (A minimum of two valid variables are required, though all six will be used if available.)

Once the average of the individual variables is calculated, that average is ranked against all stocks. Put another way, each stock’s composite valuation is compared to all other stocks. These ranks are then sorted into quintiles from the cheapest 20% (a grade of A) to the most expensive 20% (a grade of F).

As always, we recommend that you conduct proper due diligence and research before investing in any security. We also suggest that investors utilize numerous grades, not just value, when it comes to deciding whether a company is a good fit for their allocation needs.

Corecivic Inc’s Value Grade

Value Grade:

CoreCivic, Inc. is a diversified, government-solutions company. The Company provides a broad range of solutions to government partners that serve the public good through corrections and detention management. Its segments include CoreCivic Safety, CoreCivic Community, and CoreCivic Properties. CoreCivic Safety segment consists of the correctional and detention facilities that are owned, or controlled via a long-term lease, and managed by CoreCivic, as well as those correctional and detention facilities owned by third parties but managed by CoreCivic. CoreCivic Safety also includes the operating results of its subsidiary that provides transportation services to governmental agencies, TransCor America, LLC. CoreCivic Community segment consists of the residential reentry centers that are owned, or controlled via a long-term lease, and managed by CoreCivic. CoreCivic Properties segment consists of the real estate properties owned by CoreCivic and leased to government agencies.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Corecivic Inc has a Value Score of 70, which is considered to be undervalued.

When you look at Corecivic Inc’s price-to-sales ratio at 0.86 compared to the industry median at 1.65, this company has a lower price relative to revenue compared to its peers. This could make Corecivic Inc’s stock more attractive for value investors.

Corecivic Inc’s price-earnings ratio is 24.93 compared to the industry median at 23.61. This means it has a higher share price relative to earnings compared to its peers. This could make Corecivic Inc less attractive for value investors.

Now, let’s assess Corecivic Inc’s EV/EBITDA ratio, also known as enterprise multiple. At 7.6, when compared to the industry median of 11.1, the company may be considered undervalued in relation to its peers. Value investors could use the enterprise multiple to identify stocks that are considered overvalued or undervalued relative to their industry.

Shareholder yield is the sum of a stock’s dividend yield (paid over previous 12 months minus special dividends) and the percentage of net share buybacks over the previous 12 months. Corecivic Inc’s shareholder yield is higher than its industry median ratio of -0.00%. Value investors may look for an attractive shareholder yield because it can be a powerful tool for identifying if the company has a good management team.

As one of the most common value metrics, the price-to-book ratio evaluates a company’s current market price relative to its book value. Corecivic Inc’s price-to-book ratio is lower than its industry median ratio of 2.41. This could make Corecivic Inc more attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at Corecivic Inc’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. Corecivic Inc’s price-to-free-cash-flow ratio is lower than its industry median ratio of 14.67. This could make Corecivic Inc more attractive because the lower P/FCF ratio indicates that Corecivic Inc is undervalued. The P/FCF ratio metric can also be viewed over a long-term time frame to see if the company's cash flow to share price value is generally improving or worsening.

Emerald Holding Inc’s Value Grade

Value Grade:

Emerald Holding, Inc. is an operator of business-to-business (B2B) trade shows in the United States. The Company is engaged in building market platforms that integrate live events, media content, industry insights, digital tools, data-focused solutions, and e-commerce platforms through its three business lines: Connections, Content and Commerce. Its segments include Commerce, Design, Creative & Technology, All Other, and Corporate-Level Activity. The Commerce segment includes events and services covering merchandising, licensing, retail sourcing and marketing to enable professionals to make informed decisions and meet consumer demands. The Design, Creative & Technology segment includes events and services that support a variety of industries connecting businesses and professionals with products and operational strategies. It offers B2B e-commerce and digital merchandising solutions, serving the needs of manufacturers and retailers through its Elastic Suite and Bulletin platforms.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Emerald Holding Inc has a Value Score of 67, which is considered to be undervalued.

Emerald Holding Inc’s price-to-book ratio is higher than its peers. This could make Emerald Holding Inc less attractive for value investors when compared to the industry median at 2.41.

You can read more about Emerald Holding Inc’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Guardforce AI Co Ltd’s Value Grade

Value Grade:

Guardforce AI Co., Limited is an integrated security solutions provider. The Company is focused on developing robotic solutions and information security services that complement its secured logistics business. Its businesses are categorized into three main units: Secured Logistics Business, Robotics Solution Business and Information Security Business. Its Secured Logistics Business include Cash-In-Transit-Non-Dedicated Vehicle (Non-DV); Cash-In-Transit - Dedicated Vehicle (DV); ATM management; Cash Processing (CPC); Cash Center Operations (CCT); Consolidate Cash Center Operations (CCC); Cheque Center Service (CDC); Express Cash; Coin Processing Service, and Cash Deposit Management Solutions (GDM). It has three robotics products: Reception Robot (T - Series) for indoor stationary applications, Disinfection Robots (S - Series) and Delivery Robot (D - Series) for indoor applications.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Guardforce AI Co Ltd has a Value Score of 63, which is considered to be undervalued.

Guardforce AI Co Ltd’s price-to-book ratio is higher than its peers. This could make Guardforce AI Co Ltd less attractive for value investors when compared to the industry median at 2.41.

You can read more about Guardforce AI Co Ltd’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Starbox Group Holdings Ltd’s Value Grade

Value Grade:

Starbox Group Holdings Ltd. is engaged in connecting retail merchants with individual online and offline shoppers to facilitate transactions through cash rebate offered by retail merchants, providing digital advertising services to retail merchants, and providing payment solution services to merchants. The Company connects retail merchants with retail shoppers to facilitate transactions through cash rebates offered by retail merchants; provides digital advertising services to advertisers and provides payment solution services to merchants. The Company cooperates with retail merchants, which have registered on the GETBATS Website and mobile app as merchants, to offer cash rebates on their products or services. The Company's advertisements are primarily distributed through SEEBATS website and mobile application; its GETBATS website and mobile app to its members, and social media, mainly consisting of accounts of influencers and bloggers. Its subsidiary is Starbox Holdings Bhd.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Starbox Group Holdings Ltd has a Value Score of 68, which is considered to be undervalued.

Starbox Group Holdings Ltd’s price-earnings ratio is 3.0 compared to the industry median at 23.6. This means that it has a lower price relative to its earnings compared to its peers. This makes Starbox Group Holdings Ltd more attractive for value investors.

Starbox Group Holdings Ltd’s price-to-book ratio is higher than its peers. This could make Starbox Group Holdings Ltd less attractive for value investors when compared to the industry median at 2.41.

You can read more about Starbox Group Holdings Ltd’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Usio Inc’s Value Grade

Value Grade:

Usio, Inc. provides integrated payment processing services to merchants and businesses. It provides various types of automated clearing house (ACH), processing, credit, prepaid card and debit card-based processing services. It offers customizable prepaid cards companies use for expense management, incentives, refunds, claims and disbursements, different forms of compensation like per diems, and more. It also offers prepaid cards to consumers for use as a tool to stay on budget, manage allowances and share money with family and friends. The Company?s Card platform supports Apple Pay, Samsung Pay, and Google Pay. Its PIN-less debit product allows merchants to debit and credit accounts in real-time. Through its Akimbo Now technology it offers money disbursement platform that allows businesses to pay their contractors, employees, or other recipients by choosing between a prepaid debit Mastercard, real-time deposit to a checking account, traditional ACH, direct deposit or paper check.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Usio Inc has a Value Score of 63, which is considered to be undervalued.

Usio Inc’s price-to-book ratio is higher than its peers. This could make Usio Inc less attractive for value investors when compared to the industry median at 2.41.

You can read more about Usio Inc’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Western Union Co’s Value Grade

Value Grade:

The Western Union Company is a provider of money movement and payment services. The Company?s segments include Consumer-to-Consumer and Business Solutions. The Consumer-to-Consumer operating segment facilitates money transfers that are sent from retail agent locations worldwide or through Websites and mobile devices, including digital money transfer services. Its money transfer service is provided through one interconnected global network and these services are available for international cross-border transfers and, in certain countries, intra-country transfers. The Business Solutions segment facilitates payment and foreign exchange solutions, primarily cross-border, cross-currency transactions, for small and medium-sized enterprises, and other organizations and individuals. The Company?s other segment primarily includes its bill payment services, which facilitate payments from consumers to businesses and other organizations.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Western Union Co has a Value Score of 67, which is considered to be undervalued.

Western Union Co’s price-earnings ratio is 6.0 compared to the industry median at 23.6. This means that it has a lower price relative to its earnings compared to its peers. This makes Western Union Co more attractive for value investors.

Western Union Co’s price-to-book ratio is lower than its peers. This could make Western Union Co more attractive for value investors when compared to the industry median at 2.41.

You can read more about Western Union Co’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Other Business Support Services Stock Grades

Value is just one of the five Stock Grades included in our A+ Investor service. AAII members can see the top-graded stocks—those with grades of A or B for value, growth, momentum, earnings estimate revisions and quality—on the A+ Stock Grades Screener.

Also, if you want full access to all of AAII’s premium services, you can subscribe to one convenient bundled plan called AAII Platinum where you can try out A+ Investor, AAII Dividend Investing, the Stock Superstars Report, Growth Investing and VMQ Stocks. With the other premium services, you can dive deep into additional metrics, portfolios, commentary and information about Business Support Services stocks as well as other industrys.

Choosing Which of the 6 Best Business Support Services Stocks Is Right for You

Choosing which value stocks to invest in will ultimately depend on your individual goals and allocation; however, comparing similar value stocks in the same industry can help you analyze which might be better investments for you in the long run. So, let’s take a look at the Value Grade for all of our stocks.

• Corecivic Inc stock has a Value Grade of B.
• Emerald Holding Inc stock has a Value Grade of B.
• Guardforce AI Co Ltd stock has a Value Grade of B.
• Starbox Group Holdings Ltd stock has a Value Grade of B.
• Usio Inc stock has a Value Grade of B.
• Western Union Co stock has a Value Grade of B.

Now that you have a bit more background about each of the 6 undervalued stocks in the Business Support Services industry as well as their overall grades, it’s time for you to conduct additional research to see if these could fit your portfolio needs based on your goals and risk tolerance. AAII can help you figure out both and identify which investments align with what works best for you.

We do so through a program of education that teaches you to invest for yourself and become an effective manager of your own wealth—no more relying on others for your financial independence. You can rely on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis that makes you a better investor.

A+ Investor adds to that qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

Additional Resources About Business Support Services Stocks

Want to learn more about Business Support Services stocks to see if they could be the right investment for you? Check out some additional resources and articles to help you on your financial journey.

• 6 Undervalued Business Support Services Stocks for Friday, November 24
• 5 Undervalued Business Support Services Stocks for Thursday, November 23
• 6 Undervalued Business Support Services Stocks for Wednesday, November 22
• Which Is a Better Investment, AvidXchange Holdings Inc or Euronet Worldwide Inc Stock?

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith and we accept no liability for any errors or omissions. The full disclaimer can be read here.