Barrett Business Services, Inc. (BBSI) Hits Fresh High: Is There Still Room to Run?

Core Viewpoint - Barrett Business Services (BBSI) has shown strong stock performance, with a 7.4% increase over the past month and a 15.6% rise since the beginning of the year, outperforming both the Zacks Business Services sector and the Zacks Outsourcing industry [1][2]. Performance Metrics - The company has consistently exceeded earnings expectations, reporting an EPS of $-0.02 against a consensus estimate of $-0.31 in its last earnings report [2]. - For the current fiscal year, Barrett is projected to achieve earnings of $1.99 per share on revenues of $8.26 billion, reflecting a -73.07% change in EPS and a 7.02% change in revenues [2]. - The next fiscal year forecasts earnings of $2.19 per share on $8.96 billion in revenues, indicating a year-over-year change of 10.37% in EPS and 8.47% in revenues [2]. Valuation Metrics - Barrett's stock trades at 16.8X current fiscal year EPS estimates, slightly below the peer industry average of 17.2X [4]. - On a trailing cash flow basis, the stock trades at 15.4X compared to the peer group's average of 11.9X [4]. - The PEG ratio stands at 1.2, which does not position the company among the top value stocks [4]. Style Scores and Zacks Rank - Barrett has a Value Score of A, with Growth and Momentum Scores of C and D, respectively, resulting in a VGM Score of B [3]. - The stock holds a Zacks Rank of 2 (Buy), supported by rising earnings estimates, making it a suitable choice for investors [5].