Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 4 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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4 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 4 undervalued stocks in the Business Support Services industry for Monday, September 30, 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, currency processing and training, and compliance 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 service, including shipment protection, money escorts, asset vaulting, financial services, such as handling transportation and storage of currency; training; and compliance services. It offers a fully integrated approach to managing the movement of cannabis and cash from growers through dispensaries via armed and armored transport, currency processing, vaulting and related credit. It supplies asset protection via armored transportation and currency processing services to licensees in Colorado, Arizona, Nevada, and New Mexico, out of its two business locations.

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 86, which is considered to be undervalued.

When you look at Blue Line Protection Group Inc’s price-to-sales ratio at 0.19 compared to the industry median at 1.81, 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.

Blue Line Protection Group Inc’s price-earnings ratio is 21.04 compared to the industry median at 22.85. This means it has a lower share price relative to earnings compared to its peers. This could make Blue Line Protection Group Inc more attractive for value investors.

Now, let’s assess Blue Line Protection Group Inc’s EV/EBITDA ratio, also known as enterprise multiple. At 1.5, when compared to the industry median of 11.4, 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 the same 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.

Euronet Worldwide Inc’s Value Grade

Value Grade:

Euronet Worldwide, Inc. is a global financial technology solutions and payments provider. The Company operates through three segments. Its Electronic Funds Transfer (EFT) segment meets the needs of financial institutions and consumers through Euronet-owned and outsourced ATMs and POS terminals combined with value-added and transaction processing services. EFT offers a suite of integrated electronic financial transaction software solutions for electronic payment and transaction delivery systems. Its epay segment provides retail payment solutions and delivers connections between the digital content of the brands and consumers. Its Money Transfer segment provides global money transfers and currency exchange information in retail stores, apps, and websites through Ria Money Transfer, Xe and the Dandelion cross-border real-time payments network. Its Money Transfer segment offers real-time, cross-border payments to consumers and businesses across over 198 countries and territories.

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.

Euronet Worldwide Inc has a Value Score of 69, which is considered to be undervalued.

Euronet Worldwide Inc’s price-earnings ratio is 17.5 compared to the industry median at 22.8. This means that it has a lower price relative to its earnings compared to its peers. This makes Euronet Worldwide Inc more attractive for value investors.

Euronet Worldwide Inc’s price-to-book ratio is lower than its peers. This could make Euronet Worldwide Inc more attractive for value investors when compared to the industry median at 2.96.

You can read more about Euronet Worldwide 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.

Resources Connection Inc’s Value Grade

Value Grade:

Resources Connection, Inc. is a global consulting firm. The Company’s segments include Resources Global Professionals (RGP), and Other Segments. The RGP is a global consulting firm focused on project execution services that power clients’ operational needs and change initiatives utilizing on-demand, experienced and diverse talent. The RGP also offers advisory offerings in the financial services sector across four areas: strategy and management, risk and regulatory compliance, digital and technology and data and analytics. The Other Segments include Sitrick, which is a crisis communications and public relations firm which operates under the Sitrick brand, providing corporate, financial, transactional and crisis communication and management services. It specializes in co-delivery of enterprise initiatives typically precipitated by business transformation, strategic transactions or regulatory change. The Company’s principal markets of operations are North America, Europe and Asia Pacific.

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.

Resources Connection Inc has a Value Score of 74, which is considered to be undervalued.

Resources Connection Inc’s price-earnings ratio is 15.2 compared to the industry median at 22.8. This means that it has a lower price relative to its earnings compared to its peers. This makes Resources Connection Inc more attractive for value investors.

Resources Connection Inc’s price-to-book ratio is higher than its peers. This could make Resources Connection Inc less attractive for value investors when compared to the industry median at 2.96.

You can read more about Resources Connection 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.

SU Group Holdings Ltd’s Value Grade

Value Grade:

SU Group Holdings Ltd is a holding company mainly engaged in the provision of security-related engineering services. The Company operates its business through its subsidiaries, Shine Union Ltd and Fortune Jet Management & Training Co Ltd. The Shine Union Ltd provides turnkey services to the existing infrastructure or planned development of its customers through the design, supply, installation, and maintenance of security systems. It is also the exclusive distributor to market and sell two brands of threat detection systems, which includes X-ray machines, trace detection products, metal detectors and mail screening machines. Fortune Jet Management & Training Co Ltd mainly provides security guarding and screening services and related vocational training services.

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.

SU Group Holdings Ltd has a Value Score of 63, which is considered to be undervalued.

SU Group Holdings Ltd’s price-earnings ratio is 10.4 compared to the industry median at 22.8. This means that it has a lower price relative to its earnings compared to its peers. This makes SU Group Holdings Ltd more attractive for value investors.

SU Group Holdings Ltd’s price-to-book ratio is higher than its peers. This could make SU Group Holdings Ltd less attractive for value investors when compared to the industry median at 2.96.

You can read more about SU 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 4 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.
• Euronet Worldwide Inc stock has a Value Grade of B.
• Resources Connection Inc stock has a Value Grade of B.
• SU Group Holdings Ltd stock has a Value Grade of B.

Now that you have a bit more background about each of the 4 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.

• 4 Undervalued Business Support Services Stocks for Monday, September 30
• 5 Undervalued Business Support Services Stocks for Friday, September 27
• Why CompoSecure Inc’s (CMPO) Stock Is Up 4.46%
• Why Serve Robotics Inc’s (SERV) Stock Is Up 11.57%

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.