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.

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.

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

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, April 18, 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.

Concentrix Corp’s Value Grade

Value Grade:

Concentrix Corporation is a global provider of Customer Experience (CX) solutions and technology. The Company provides end-to-end capabilities, including CX process optimization, technology innovation, front- and back-office automation, analytics and business transformation services to clients. It offers its clients integrated solutions supporting the customer lifecycle; CX and user experience (UX) strategy and design, and analytics and actionable insights. Its Customer Lifecycle Management solutions include services, such as customer care, sales support, digital marketing, technical support, digital self-service, content moderation, creative design and content production, and back-office services. The Company?s CX/UX Strategy and Design solutions include CX strategy, data-driven user design, journey mapping and multi-platform engineering. Its Digital Transformation solutions include services, such as Robotic Process Automation (RPA) and cognitive automation.

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.

Concentrix Corp has a Value Score of 61, which is considered to be undervalued.

When you look at Concentrix Corp’s price-to-sales ratio at 0.88 compared to the industry median at 1.85, this company has a lower price relative to revenue compared to its peers. This could make Concentrix Corp’s stock more attractive for value investors.

Concentrix Corp’s price-earnings ratio is 14.03 compared to the industry median at 24.00. This means it has a lower share price relative to earnings compared to its peers. This could make Concentrix Corp more attractive for value investors.

Now, let’s assess Concentrix Corp’s EV/EBITDA ratio, also known as enterprise multiple. At 9.0, when compared to the industry median of 11.7, 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. Concentrix Corp’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. Concentrix Corp’s price-to-book ratio is lower than its industry median ratio of 2.60. This could make Concentrix Corp more attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at Concentrix Corp’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. Concentrix Corp’s price-to-free-cash-flow ratio is lower than its industry median ratio of 16.72. This could make Concentrix Corp more attractive because the lower P/FCF ratio indicates that Concentrix Corp 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.

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 88, which is considered to be undervalued.

Corecivic Inc’s price-earnings ratio is 8.9 compared to the industry median at 24.0. This means that it has a lower price relative to its earnings compared to its peers. This makes Corecivic Inc more attractive for value investors.

Corecivic Inc’s price-to-book ratio is higher than its peers. This could make Corecivic Inc less attractive for value investors when compared to the industry median at 2.60.

You can read more about Corecivic 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.

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 offers live events, media content, industry insights, digital tools, data-focused solutions, and e-commerce platforms into 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. The Company 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 95, which is considered to be undervalued.

Emerald Holding Inc’s price-earnings ratio is 8.8 compared to the industry median at 24.0. This means that it has a lower price relative to its earnings compared to its peers. This makes Emerald Holding Inc more attractive for value investors.

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. It serves various industries, such as transportation, healthcare, technology, financial services, business and consumer services, manufacturing, education, retail and not-for-profit.

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 75, which is considered to be undervalued.

HireRight Holdings Corp’s price-earnings ratio is 5.7 compared to the industry median at 24.0. This means that it has a lower price relative to its earnings compared to its peers. This makes HireRight Holdings Corp more attractive for value investors.

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 2.60.

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.

Resources Connection Inc’s Value Grade

Value Grade:

Resources Connection, Inc. is a global consulting company. It operates through three segments: Resources Global Professionals (RGP), Taskforce, and Sitrick. RGP segment is a global business consulting firm focused on project execution services that enable clients operational and change initiatives with experienced and diverse talent. Taskforce segment is a German professional services firm that operates under the taskforce brand. It utilizes a distinct independent contractor/partner business model and infrastructure and focuses on providing senior interim management and project management services to middle-market clients in the German market. Sitrick segment 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 precipitated by business transformation, strategic transactions, or regulatory change.

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 85, which is considered to be undervalued.

Resources Connection Inc’s price-earnings ratio is 8.6 compared to the industry median at 24.0. 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 2.60.

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.

TuanChe Ltd (ADR)’s Value Grade

Value Grade:

TuanChe Limited is a China-based company that mainly provides a scalable omni-channel automotive marketplace approach to automotive marketing and distribution. The Company mainly provides offline marketing solutions, referral service for commercial bank and online marketing services and others. The Company offers marketing solutions by integrating our online platform and offline sales events. Its online platform, which consists of its tuanche.com website, apps, official WeChat account, WeChat mini-programs, Cheshangtong, and other mobile outlets, serves as a platform for consumer acquisition and management.

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.

TuanChe Ltd (ADR) has a Value Score of 64, which is considered to be undervalued.

TuanChe Ltd (ADR)’s price-to-book ratio is higher than its peers. This could make TuanChe Ltd (ADR) less attractive for value investors when compared to the industry median at 2.60.

You can read more about TuanChe Ltd (ADR)’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.

Triton International Ltd’s Value Grade

Value Grade:

Triton International Limited is an intermodal container leasing company. The Company is a lessor of intermodal containers and chassis. Its operations include the acquisition, leasing, re-leasing and subsequent sale of multiple types of intermodal containers and chassis. The Company’s segments include Equipment leasing and Equipment trading. The Company’s Equipment leasing operations include the acquisition, leasing, re-leasing and ultimate sale of multiple types of intermodal transportation equipment, primarily intermodal containers. The Equipment trading segment consists of purchasing containers from shipping line customers, and other sellers of containers, and resell these containers to container retailers and users of containers for storage or one-way shipment. It also leases chassis, which are used for the transportation of containers. It leases and sells quality intermodal shipping containers and related equipment through third-party depots and locations across the world.

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.

Triton International Ltd has a Value Score of 75, which is considered to be undervalued.

Triton International Ltd’s price-earnings ratio is 7.5 compared to the industry median at 24.0. This means that it has a lower price relative to its earnings compared to its peers. This makes Triton International Ltd more attractive for value investors.

Triton International Ltd’s price-to-book ratio is higher than its peers. This could make Triton International Ltd less attractive for value investors when compared to the industry median at 2.60.

You can read more about Triton International 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 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.

• Concentrix Corp stock has a Value Grade of B.
• Corecivic 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.
• Resources Connection Inc stock has a Value Grade of A.
• TuanChe Ltd (ADR) stock has a Value Grade of B.
• Triton International Ltd 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, April 18
• Is Multi Ways Holdings Ltd (MWG) Stock a Good Investment?
• 5 Undervalued Business Support Services Stocks for Monday, April 17
• Is VCI Global Ltd (VCIG) Stock a Good Investment?

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.