Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 6 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.

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6 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 6 undervalued stocks in the Business Support Services industry for Tuesday, June 27, 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.

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 77, which is considered to be undervalued.

When you look at Blue Line Protection Group Inc’s price-to-sales ratio at 0.23 compared to the industry median at 1.76, 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 12.0, when compared to the industry median of 11.3, the company may be considered overvalued 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.

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 73, which is considered to be undervalued.

Concentrix Corp’s price-earnings ratio is 10.6 compared to the industry median at 22.5. This means that it has a lower price relative to its earnings compared to its peers. This makes Concentrix Corp more attractive for value investors.

Concentrix Corp’s price-to-book ratio is higher than its peers. This could make Concentrix Corp less attractive for value investors when compared to the industry median at 2.34.

You can read more about Concentrix 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.

Repay Holdings Corp’s Value Grade

Value Grade:

Repay Holdings Corporation is a payments technology company. The Company provides integrated payment processing solutions to industry-oriented markets in which clients have specific transaction processing needs. Its segments include Consumer Payments and Business Payments. The Consumer Payments segment provides payment processing solutions, including debit and credit card processing, Automated Clearing House (ACH) processing and other electronic payment acceptance solutions, as well as its loan disbursement product that enable its clients to collect payments and disburse funds to consumers and includes its clearing and settlement solutions (RCS) and Blue Cow Software business (BCS). Business Payments segment provides payment processing solutions, including accounts payable automation, debit and credit card processing, virtual credit card processing, ACH processing and other electronic payment acceptance solutions that enable its clients to collect or send payments to other 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.

Repay Holdings Corp has a Value Score of 63, which is considered to be undervalued.

Repay Holdings Corp’s price-to-book ratio is higher than its peers. This could make Repay Holdings Corp less attractive for value investors when compared to the industry median at 2.34.

You can read more about Repay 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.

Startek Inc’s Value Grade

Value Grade:

StarTek, Inc. is a provider of technology-enabled business process management solutions. It offers omni-channel customer experience (CX), digital transformation, and technology services. Its geographical segments include the Americas, India and Sri Lanka, Malaysia, Australia, South Africa, and the Rest of the World. It offers a range of CX, technology and back-office support solutions. It offers a range of services, such as customer engagement, omnichannel engagement, social media, customer intelligence analytics, work from home, back-office services and Startek Cloud. Its back-office services include finance and accounting services, human resource processing services, data management and spend management services. Its Startek Cloud is a next generation, hybrid, omni-cloud platform, which is integrated with artificial intelligence capabilities, which enables agents to work in remote and home-based roles. It serves various clients, such as insurance, healthcare, travel, and hospitality.

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.

Startek Inc has a Value Score of 82, which is considered to be undervalued.

Startek Inc’s price-to-book ratio is higher than its peers. This could make Startek Inc less attractive for value investors when compared to the industry median at 2.34.

You can read more about Startek 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 69, 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 2.34.

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.

Usio Inc’s Value Grade

Value Grade:

Usio, Inc. provides integrated payment processing services to merchants and businesses. It provides various types of automated clearing house (ACH), processing, credit, prepaid card and debit card-based processing services. It offers customizable prepaid cards companies use for expense management, incentives, refunds, claims and disbursements, different forms of compensation like per diems, and more. It also offers prepaid cards to consumers for use as a tool to stay on budget, manage allowances and share money with family and friends. The Company?s Card platform supports Apple Pay, Samsung Pay, and Google Pay. Its PIN-less debit product allows merchants to debit and credit accounts in real-time. Through its Akimbo Now technology it offers money disbursement platform that allows businesses to pay their contractors, employees, or other recipients by choosing between a prepaid debit Mastercard, real-time deposit to a checking account, traditional ACH, direct deposit or paper check.

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.

Usio Inc has a Value Score of 64, which is considered to be undervalued.

Usio Inc’s price-to-book ratio is lower than its peers. This could make Usio Inc more attractive for value investors when compared to the industry median at 2.34.

You can read more about Usio 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.

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 6 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 B.
• Concentrix Corp stock has a Value Grade of B.
• Repay Holdings Corp stock has a Value Grade of B.
• Startek Inc stock has a Value Grade of A.
• TuanChe Ltd (ADR) stock has a Value Grade of B.
• Usio Inc stock has a Value Grade of B.

Now that you have a bit more background about each of the 6 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.

• 6 Undervalued Business Support Services Stocks for Tuesday, June 27
• 4 Undervalued Business Support Services Stocks for Monday, June 26
• Why Remitly Global Inc’s (RELY) Stock Is Down 4.40%
• Why VCI Global Ltd’s (VCIG) Stock Is Up 10.03%

AAII Disclaimer

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