Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 7 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.

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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7 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 7 undervalued stocks in the Business Support Services industry for Tuesday, February 20, 2024. 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.

Sunrise New Energy Co Ltd’s Value Grade

Value Grade:

Sunrise New Energy Co Ltd, formerly Global Internet of People Inc, is a holding company engaged in providing enterprise services to small and medium-sized enterprises. The Company mainly offers four kinds of services, member services, enterprise services, online services and other services. The enterprise services include three types. The comprehensive tailored services include tailored packaged services, such as conference and salon organization, booth exhibition services, on-site Mentors' guidance, and other value-added services. The sponsorship advertising services include sponsorship advertising on certain activities. The consulting services include corporate reorganization, product promotion and marketing, industry supply chain integration, corporate governance, financing and capital structure. The online services include questions and answers (Q&A;) session with chosen Mentors and online streaming of courses and programs via its mobile application (APP) Shidonghui App.

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.

Sunrise New Energy Co Ltd has a Value Score of 62, which is considered to be undervalued.

When you look at Sunrise New Energy Co Ltd’s price-to-sales ratio at 0.47 compared to the industry median at 1.88, this company has a lower price relative to revenue compared to its peers. This could make Sunrise New Energy Co Ltd’s stock more attractive for value investors.

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. Sunrise New Energy Co Ltd’s shareholder yield is lower 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. Sunrise New Energy Co Ltd’s price-to-book ratio is lower than its industry median ratio of 2.71. This could make Sunrise New Energy Co Ltd more attractive to investors looking for a new addition to their portfolio.

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 66, 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 2.71.

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.

Herc Holdings Inc’s Value Grade

Value Grade:

Herc Holdings Inc. is an equipment rental supplier. The Company offers a portfolio of equipment for rent. In addition to its principal business of equipment rental, the Company sells used equipment and contractor supplies such as construction consumables, tools, small equipment and safety supplies; provides repair, maintenance, equipment management services and safety training to certain of its customers; offers equipment re-rental services and provides on-site support to its customers, and provides ancillary services such as equipment transport, rental protection, cleaning, refueling and labor. Its fleet includes aerial, earthmoving, material handling, trucks and trailers, air compressors, compaction and lighting. Its ProContractor business focuses on professional-grade tools and equipment, and offers industry-specific solutions-based services, which include power generation, climate control, remediation and restoration, pumps, trench shoring, studio and production equipment.

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.

Herc Holdings Inc has a Value Score of 76, which is considered to be undervalued.

Herc Holdings Inc’s price-earnings ratio is 12.2 compared to the industry median at 27.0. This means that it has a lower price relative to its earnings compared to its peers. This makes Herc Holdings Inc more attractive for value investors.

Herc Holdings Inc’s price-to-book ratio is lower than its peers. This could make Herc Holdings Inc more attractive for value investors when compared to the industry median at 2.71.

You can read more about Herc Holdings 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.

Multiplan Corp’s Value Grade

Value Grade:

MultiPlan Corporation is a provider of data analytics and technology-enabled solutions to the United States healthcare industry. Its Analytics-Based Services is a suite of data-driven algorithms and insights that detect claims over-charges and either negotiate or recommend fair reimbursement for out-of-network medical costs using a variety of data sources and pricing algorithms. Its Network-Based Services contracts discounts with healthcare providers to form an independent preferred provider organizations (PPO), as well as outsourced network development and/or management services. Its Payment and Revenue Integrity Services provides data, technology and clinical solutions deployed to identify and remove improper and unnecessary charges before or after claims are paid, or to identify and help restore and preserve underpaid premium dollars. Its Software as a Service (SaaS) platform ingests, validates, and stores data and applies advanced descriptive, predictive and prescriptive analytics.

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.

Multiplan Corp has a Value Score of 72, which is considered to be undervalued.

Multiplan Corp’s price-to-book ratio is higher than its peers. This could make Multiplan Corp less attractive for value investors when compared to the industry median at 2.71.

You can read more about Multiplan Corp’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.

Taskus Inc’s Value Grade

Value Grade:

TaskUs, Inc. is a provider of outsourced digital services and customer experience to companies, helping its clients represent, protect and grow their brands. Leveraging a cloud-based infrastructure, the Company serves clients in various sectors, including social media, e-commerce, gaming, streaming media, food delivery and ride sharing, technology, financial technology (FinTech) and health technology (HealthTech). The Company serves approximately 47,000 people across 27 locations in 13 countries, including the United States, the Philippines and India. Its global, omni-channel delivery model is focused on providing its clients with three key services: Digital Customer Experience (Digital CX), Trust and Safety, and Artificial Intelligence (AI) Services. Its cloud-based technology infrastructure is designed to enable clients to set up operations and allow clients to outsource many of their core processes throughout their company lifecycle.

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.

Taskus Inc has a Value Score of 61, which is considered to be undervalued.

Taskus Inc’s price-earnings ratio is 26.8 compared to the industry median at 27.0. This means that it has a lower price relative to its earnings compared to its peers. This makes Taskus Inc more attractive for value investors.

Taskus Inc’s price-to-book ratio is higher than its peers. This could make Taskus Inc less attractive for value investors when compared to the industry median at 2.71.

You can read more about Taskus 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.

Textainer Group Holdings Ltd’s Value Grade

Value Grade:

Textainer Group Holdings Limited is a lessor of intermodal containers with more than four million twenty-foot equivalent unit (TEU) in its owned and managed fleet. The Company leases containers to approximately 200 customers, including international shipping lines, and other lessees. Its fleet consists of standard dry freight, refrigerated intermodal containers, and dry freight specials. The Company’s segments include Container Ownership, Container Management and Container Resale. The Container Ownership segment consists primarily of standard dry freight containers, but also includes refrigerated and other special-purpose containers. The Container Management segment manages, on a worldwide basis, a fleet of containers for and on behalf of the container investors. The Container Resale segment buys and subsequently resells containers (trading containers) from third parties. The Company operates via a network of approximately14 offices and 400 independent depots worldwide.

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.

Textainer Group Holdings Ltd has a Value Score of 75, which is considered to be undervalued.

Textainer Group Holdings Ltd’s price-earnings ratio is 11.5 compared to the industry median at 27.0. This means that it has a lower price relative to its earnings compared to its peers. This makes Textainer Group Holdings Ltd more attractive for value investors.

Textainer Group Holdings Ltd’s price-to-book ratio is higher than its peers. This could make Textainer Group Holdings Ltd less attractive for value investors when compared to the industry median at 2.71.

You can read more about Textainer 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.

Scworx Corp’s Value Grade

Value Grade:

SCWorx Corp. is a provider of data content and services related to the repair, normalization and interoperability of information for healthcare providers, as well as big data analytics. for the healthcare industry. The Company is engaged in developing and marketing health care information technology solutions and associated services that improve healthcare processes and information flow within hospitals and other healthcare facilities. Its software enables a healthcare provider to simplify and organize its data; allows the data to be utilized across multiple internal software applications and provides the basis for sophisticated data analytics. Its software solution modules include virtualized item master file repair, expansion, and automation; electronic medical record management; charge description master (CDM) management; contract management; request for proposal (RFP) automation; rebate management; big data analytics modeling, and data integration and warehousing.

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.

Scworx Corp has a Value Score of 69, which is considered to be undervalued.

Scworx Corp’s price-to-book ratio is higher than its peers. This could make Scworx Corp less attractive for value investors when compared to the industry median at 2.71.

You can read more about Scworx Corp’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 7 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.

• Sunrise New Energy Co Ltd stock has a Value Grade of B.
• Guardforce AI Co Ltd stock has a Value Grade of B.
• Herc Holdings Inc stock has a Value Grade of B.
• Multiplan Corp stock has a Value Grade of B.
• Taskus Inc stock has a Value Grade of B.
• Textainer Group Holdings Ltd stock has a Value Grade of B.
• Scworx Corp stock has a Value Grade of B.

Now that you have a bit more background about each of the 7 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.

• 7 Undervalued Business Support Services Stocks for Tuesday, February 20
• 7 Undervalued Business Support Services Stocks for Monday, February 19
• 6 Undervalued Business Support Services Stocks for Friday, February 16
• Why Air Lease Corp’s (AL) Stock Is Down 4.78%

AAII Disclaimer

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