BJS – BJ services company scores pretty well on several value investing benchmarks. A 9.23 PE ratio is pretty low even after a recent beating its stock price has taken which now rests at 52 week low. With sufficient cash on hand and rising oil prices, this company has a fair chance of observing an increase in sales in the coming months. Compare price over book of 1.3 to that of S&P at 3.0. All signs are pointing at recovery of oil prices and sustained long-term demand for oil as global economies recover. This should continue creating an environment in which oil services companies can thrive. BUT… BJS’s USA and Canadian focus present serious limits to its growth, hence another factor weighing its bargain status. Its competitors Haliburton and Schlumberger, and much larger, and have a much stronger worldwide footprint. But as a smaller competitor with a potential to grow internationally, I believe BJS is a good value play.
Here is a nasdaq screener rundown of this stock:
http://www.nasdaq.com/asp/guruanalysis.asp?symbol=bjs&selected=bjs
(disclaimer – i do not own BJS shares or any of its competitors mentioned in this post)