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 Diversified Consumer 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 Diversified Consumer 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 Diversified Consumer 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 Diversified Consumer Services industry for Friday, November 01, 2024. Let’s take a closer look at their individual scores to see how they measure up against each other and the Diversified Consumer 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.

Ambow Education Holding Ltd.’s Value Grade

Value Grade:

Ambow Education Holding Ltd. operates as an AI-driven technology educational company in the United States. It develops and offers HybriU, an AI digital education solution that offers online and offline classroom discussions, instant AI translation, and simultaneous content creation services for higher learning and workforce training markets. It also offers career-focused post-secondary educational services to undergraduate students. The company was founded in 2000 and is headquartered in Cupertino, California.

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.

Ambow Education Holding Ltd. has a Value Score of 65, which is considered to be undervalued.

When you look at Ambow Education Holding Ltd.’s price-to-sales ratio at 0.48 compared to the industry median at 1.03, this company has a lower price relative to revenue compared to its peers. This could make Ambow Education Holding 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. Ambow Education Holding 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. Ambow Education Holding Ltd.’s price-to-book ratio is lower than its industry median ratio of 1.34. This could make Ambow Education Holding Ltd. more attractive to investors looking for a new addition to their portfolio.

Adtalem Global Education Inc.’s Value Grade

Value Grade:

Adtalem Global Education Inc. engages in the provision of workforce solutions worldwide. It operates through three segments: Chamberlain, Walden, and Medical and Veterinary. The company offers degree and non-degree programs, including bachelor’s, master’s, and doctoral degrees, as well as online certificates in the medical, nursing, health professions and veterinary postsecondary education, counseling, business, psychology, public health, social work and human services, public administration and public policy, and criminal justice industries. It operates Chamberlain University, Walden University, American University of the Caribbean School of Medicine, Ross University School of Medicine, and Ross University School of Veterinary Medicine. The company was formerly known as DeVry Education Group Inc. and changed its name to Adtalem Global Education Inc. in May 2017. Adtalem Global Education Inc. was incorporated in 1987 and is based in Chicago, Illinois.

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.

Adtalem Global Education Inc. has a Value Score of 69, which is considered to be undervalued.

Adtalem Global Education Inc.’s price-earnings ratio is 18.6 compared to the industry median at 19.2. This means that it has a lower price relative to its earnings compared to its peers. This makes Adtalem Global Education Inc. more attractive for value investors.

Adtalem Global Education Inc.’s price-to-book ratio is lower than its peers. This could make Adtalem Global Education Inc. more attractive for value investors when compared to the industry median at 1.34.

You can read more about Adtalem Global Education 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.

The Beachbody Company, Inc.’s Value Grade

Value Grade:

The Beachbody Company, Inc. operates as a subscription health and wellness company that provides fitness, nutrition, and stress-reducing programs in the United States and internationally. The company operates Beachbody on Demand, a digital subscription platform that provides access to a library of live and on-demand fitness and nutrition content; and Beachbody on Demand Interactive (BODi) for live fitness and nutrition programs. It also offers nutritional products, such as Shakeology, a nutrition shake; Beachbody Performance supplements comprising pre-workout energize, hydrate, post-workout recover, and protein supplement recharge products; BEACHBAR, a low-sugar snack bar; supplements under the LADDER brand; connected fitness products; and BODi Bike Studio, a package subscription to BODi with a bike and accessories. The Beachbody Company, Inc. was founded in 1998 and is headquartered in El Segundo, California.

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.

The Beachbody Company, Inc. has a Value Score of 81, which is considered to be undervalued.

The Beachbody Company, Inc.’s price-to-book ratio is higher than its peers. This could make The Beachbody Company, Inc. less attractive for value investors when compared to the industry median at 1.34.

You can read more about The Beachbody Company, 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.

Gaotu Techedu Inc.’s Value Grade

Value Grade:

Gaotu Techedu Inc., a technology-driven education company, provides learning services, educational content, and digitalized learning products in the People’s Republic of China. The company offers traditional online academic subject tutoring services that covers academic subjects, such as mathematics, English, Chinese, physics, chemistry, biology, history, geography, and political science for students; non-academic tutoring services; personal interest courses comprising chess learning, family relationships and education, humanities, and science courses; and professional courses primarily for college students and adults preparing for professional qualification exams, such as teacher’s qualification, Chartered Financial Analyst designation, Certified Public Accountant designation, and other exams. It also offers admission courses for admission tests and interviews, including national-post graduate entrance examination, civil service examinations, and others; foreign language courses; overseas study related services; and courses to prepare and pass certain language exams for study abroad, such as IELTS and TOEFL. In addition, the company designs and develops course outlines, interactive courseware, practice exercises, and lesson notes; publishes reference books comprising Chinese dictionary, dictionary of idioms, and past exam questions for the college entrance examination; and develops, expands, and upgrades education-centric digital products and solutions, as well as learning apps. Further, it offers books and digitalized auxiliary learning tools, such as smart devices and translation pens; and online tutoring services. The company was formerly known as GSX Techedu Inc. and changed its name to Gaotu Techedu Inc. in June 2021. Gaotu Techedu Inc. was incorporated in 2014 and is headquartered in Beijing, China.

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.

Gaotu Techedu Inc. has a Value Score of 97, which is considered to be undervalued.

Gaotu Techedu Inc.’s price-to-book ratio is higher than its peers. This could make Gaotu Techedu Inc. less attractive for value investors when compared to the industry median at 1.34.

You can read more about Gaotu Techedu 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.

Jianzhi Education Technology Group Company Limited’s Value Grade

Value Grade:

Jianzhi Education Technology Group Company Limited develops and provides educational content products and IT services to higher education institutions in China. The company designs and develops customized IT system services. It also offers procurement and assembling services for equipment; and technological support and maintenance services, as well as educational content and other services. In addition, the company provides mobile media services, including mobile media advertising and application content data business system services. Jianzhi Education Technology Group Company Limited was founded in 2011 and is based in Beijing, China.

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.

Jianzhi Education Technology Group Company Limited has a Value Score of 98, which is considered to be undervalued.

You can read more about Jianzhi Education Technology Group Company Limited’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.

TCTM Kids IT Education Inc.’s Value Grade

Value Grade:

TCTM Kids IT Education Inc., through its subsidiaries, engages in the provision of IT-focused education services in Mainland China. It offers supplementary science, technology, engineering, and mathematics (STEM) education programs to young children aged between three and eighteen through online teaching models and instructors from online or offline learning centers. The company also operates an education platform that offers distance instruction, classroom-based learning, and online learning modules. In addition, it operates 61it.cn, an online platform to facilitate the live instruction of STEM education courses; and Tongcheng Online App. The company was formerly known as Tarena International, Inc. and changed its name to TCTM Kids IT Education Inc. in February 2024. TCTM Kids IT Education Inc. was founded in 2002 and is headquartered in Beijing, the People’s Republic of China.

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.

TCTM Kids IT Education Inc. has a Value Score of 94, which is considered to be undervalued.

TCTM Kids IT Education Inc.’s price-earnings ratio is 5.4 compared to the industry median at 19.2. This means that it has a lower price relative to its earnings compared to its peers. This makes TCTM Kids IT Education Inc. more attractive for value investors.

You can read more about TCTM Kids IT Education 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.

Wah Fu Education Group Limited’s Value Grade

Value Grade:

Wah Fu Education Group Limited, through its subsidiaries, provides online exam preparation services and related technology solutions in the People’s Republic of China. It operates through Online Education Services; and Technological Development and Operation Service segments. The Online Education Services segment offers online education platforms to institutions, such as universities and training institutions, and online course development service companies. This segment provides self-study examination, continuing education, and non-diploma training platforms that allow students to enroll in courses for college credit; vocational education 1+X and higher vocational enrollment expansion teaching and educational administration platform; Huafu e-school system and paperless examination platform; and online training and examination preparation services directly to students. The Technological Development and Operation Services segment develops and maintains online education platforms and online courses for its clients, including universities and government agencies, as well as private clients, such as publishers; and offers consulting, maintenance, and updating services related to online education programs. In addition, the company produces online training course materials. The company was founded in 1999 and is headquartered in Beijing, the People’s Republic of China.

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.

Wah Fu Education Group Limited has a Value Score of 89, which is considered to be undervalued.

Wah Fu Education Group Limited’s price-to-book ratio is higher than its peers. This could make Wah Fu Education Group Limited less attractive for value investors when compared to the industry median at 1.34.

You can read more about Wah Fu Education Group Limited’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 Diversified Consumer 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 Diversified Consumer Services stocks as well as other industrys.

Choosing Which of the 7 Best Diversified Consumer 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.

• Ambow Education Holding Ltd. stock has a Value Grade of B.
• Adtalem Global Education Inc. stock has a Value Grade of B.
• The Beachbody Company, Inc. stock has a Value Grade of A.
• Gaotu Techedu Inc. stock has a Value Grade of A.
• Jianzhi Education Technology Group Company Limited stock has a Value Grade of A.
• TCTM Kids IT Education Inc. stock has a Value Grade of A.
• Wah Fu Education Group Limited stock has a Value Grade of A.

Now that you have a bit more background about each of the 7 undervalued stocks in the Diversified Consumer 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 Diversified Consumer Services Stocks

Want to learn more about Diversified Consumer 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 Diversified Consumer Services Stocks for Friday, November 01
• 6 Undervalued Diversified Consumer Services Stocks for Thursday, October 31
• 7 Undervalued Diversified Consumer Services Stocks for Wednesday, October 30
• 3 Undervalued Diversified Consumer Services Stocks for Tuesday, October 29

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.