Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 5 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.

Click the button below to learn more about A+ Investor and subscribe today.

5 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 5 undervalued stocks in the Business Support Services industry for Friday, March 15, 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.

Blue Line Protection Group Inc’s Value Grade

Value Grade:

Blue Line Protection Group, Inc. provides armed protection and transportation, banking, compliance, and training services for businesses engaged in the legal cannabis industry. The Company provides logistics, and compliance services for businesses engaged in the legal cannabis industry. The Company offers asset logistic services, such as armed transportation services; including shipment protection, money escorts, asset vaulting, financial services, such as handling transportation and storage of currency; training; and compliance services. The Company offers a fully integrated approach to managing the movement of cannabis and cash from growers through dispensaries via armed and armored transport, money processing, vaulting and related credit. Money processing services generally include counting, sorting, and wrapping currency.

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.

Blue Line Protection Group Inc has a Value Score of 98, which is considered to be undervalued.

When you look at Blue Line Protection Group Inc’s price-to-sales ratio at 0.15 compared to the industry median at 1.47, this company has a lower price relative to revenue compared to its peers. This could make Blue Line Protection Group Inc’s stock more attractive for value investors.

Now, let’s assess Blue Line Protection Group Inc’s EV/EBITDA ratio, also known as enterprise multiple. At 2.8, when compared to the industry median of 11.0, 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. Blue Line Protection Group 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.

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 91, 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 2.68.

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.

HireRight Holdings Corp’s Value Grade

Value Grade:

HireRight Holdings Corporation is a provider of technology-driven workforce risk management and compliance solutions. The Company provides comprehensive background screening, verification, identification, monitoring, and drug and health screening services for approximately 38,000 customers across the globe. It offers its services via a unified global software and data platform that integrates into its customers human capital management (HCM) systems, enabling workflows for workforce hiring, onboarding, and monitoring. It provides various types of services, such as criminal record checks, verification services, driving background services, drug and health screening services, identity services, due diligence background services, credit records background services, compliance services and business, as well as it specializes in collecting and processing biometric and biographical data. It serves various industries, including transportation, healthcare, financial services and education.

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.

HireRight Holdings Corp has a Value Score of 65, which is considered to be undervalued.

HireRight Holdings Corp’s price-to-book ratio is higher than its peers. This could make HireRight Holdings Corp less attractive for value investors when compared to the industry median at 2.68.

You can read more about HireRight Holdings 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.

International Money Express Inc’s Value Grade

Value Grade:

International Money Express, Inc. is an omnichannel money remittance services company. The Company provides the digital movement of money through a network of agent retailers in the United States, Canada, Spain, Italy and Germany; through Company-operated stores; its mobile application; and the Company’s Websites. Its remittance services include a suite of ancillary financial processing solutions and payment services available in all 50 states in the United States, Washington D.C., Puerto Rico and 13 provinces in Canada. It offers money remittance services to LAC countries, mainly Mexico and Guatemala, and others. These services involve the movement of funds on behalf of an originating consumer for receipt by a designated beneficiary at a designated receiving location. The money remittance services enable consumers to send funds through its network of locations in the United States and Canada that are primarily operated by third-party businesses.

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.

International Money Express Inc has a Value Score of 75, which is considered to be undervalued.

International Money Express Inc’s price-earnings ratio is 12.5 compared to the industry median at 26.5. This means that it has a lower price relative to its earnings compared to its peers. This makes International Money Express Inc more attractive for value investors.

International Money Express Inc’s price-to-book ratio is lower than its peers. This could make International Money Express Inc more attractive for value investors when compared to the industry median at 2.68.

You can read more about International Money Express 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.

Starbox Group Holdings Ltd’s Value Grade

Value Grade:

Starbox Group Holdings Ltd. is engaged in building a cash rebate, advertising, payment solution, and software licensing business ecosystem targeting micro, small, and medium enterprises. Its segments include Cash rebate, payment solution, and media booking; Advertising services; Software licensing; Production services, and Marketing and Promotional campaign services. Through its subsidiaries in Malaysia, the Company connects retail merchants with retail shoppers to facilitate transactions through cash rebates offered by retail merchants, provides digital advertising services to advertisers, provides payment solution services to merchants, and license customized software systems to its clients. 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. It primarily distributes advertisements through its SEEBATS and GETBATS websites and mobile applications to its members.

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 75, which is considered to be undervalued.

Starbox Group Holdings Ltd’s price-earnings ratio is 7.6 compared to the industry median at 26.5. 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 2.68.

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.

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 5 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.

• Blue Line Protection Group Inc stock has a Value Grade of A.
• Emerald Holding Inc stock has a Value Grade of A.
• HireRight Holdings Corp stock has a Value Grade of B.
• International Money Express Inc stock has a Value Grade of B.
• Starbox Group Holdings Ltd stock has a Value Grade of B.

Now that you have a bit more background about each of the 5 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.

• 5 Undervalued Business Support Services Stocks for Friday, March 15
• 7 Undervalued Business Support Services Stocks for Thursday, March 14
• Why Block Inc’s (SQ) Stock Is Down 5.23%
• Why Resources Connection Inc’s (RGP) Stock Is Down 4.50%

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.