Bear Of The Day: Bright Horizon Family Solutions (BFAM)

(BFAM) has slipped to a Zacks Rank #5 (Strong Sell) and it is the Bear of the Day today. As much as this is the Bear, it is also a chance to look at a stock that has been thrashed due to the outbreak. Most of us believe that the virus will be defeated and things will get back to normal so looking at a name like this is good exercise.

Description

Bright Horizons Family Solutions Inc. is engaged in providing employer-sponsored child care, early education and work/life solutions. Its employer-sponsored child care programs include child care and early education centers, infant/toddler/preschool care and education, full and part-time child care, kindergarten, school-age programs, summer camps and back-up care. Bright Horizons manages child care centers for corporations, hospitals, universities and government agencies The Company operates primarily in North America, Europe and India. Bright Horizons Family Solutions Inc. is based in Watertown, Massachusetts.

Recent Earnings

I see a good earnings history here with 3 of the last 4 quarters coming in ahead of the Zacks Consensus Estimate. The lone miss was two quarters ago and it was a miss of only a penny.

For the most part, this stock has a very good earnings history.

Estiamte Revisions

The main reason a stock has its Zacks Rank move is due to earnings estimate revisions. In the case of BFAM, the estimates are moving the wrong way.

The full year 2020 estimate has moved from $4.15 to $3.22 over the last seven days. Estimates tend to lag movements in the stock price.

The 2021 numbers also took a hit, but not nearly as big. The 2021 Zacks Consensus Estiamte moved from $4.70 to $4.52.

Those negative revisions helped push the Zacks Rank down to the lowest level.

Valuation

At 24x forward earnings, BFAM isn't cheap even as the stock looks to be cut in half. Last quarter we saw growth of about 9%, but the outbreak is likely to cause some ugly growth numbers in the next two earnings reports. I see a price to book of 5x which is pretty rich given any market environment... and a price to sale of 2.4x which is also somewhat high.

Margins are holding steady over the last 3 quarters with the operating marking in the 9's and the net margin in the high 8's -- but improvement is need to justify the big multiplies on this stock.

Chart

Bright Horizons Family Solutions Inc. Price and Consensus

Bright Horizons Family Solutions Inc. price-consensus-chart | Bright Horizons Family Solutions Inc. Quote

Free: Zacks’ Single Best Stock Set to Double

Today you are invited to download our latest Special Report that reveals 5 stocks with the most potential to gain +100% or more in 2020. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all.

This pioneering tech ticker had soared to all-time highs and then subsided to a price that is irresistible. Now a pending acquisition could super-charge the company’s drive past competitors in the development of true Artificial Intelligence. The earlier you get in to this stock, the greater your potential gain.

See 5 Stocks Set to Double>>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report

Bright Horizons Family Solutions Inc. (BFAM) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

光�较呒彝ソ饩�(BFAM)已经滑落到ZackRank#5(强势�，这是�男苁小Ｋ淙徽馐切埽彩且桓幔纯匆恢还善币丫淮擞捎谝咔楸ⅰＮ颐谴讼嘈挪《净岜淮磺卸蓟峄指凑＃钥纯凑庋拿质呛芎玫亩土丁�

描�>

光�较呒彝ソ饩腹局铝τ谔峁┕椭亩Ｓ⒃缙诮逃凸ぷ活解�浮Ｆ涔椭亩Ｓ桨赴ǘＳ驮缙诮逃行摹⒂ざ�/幼儿/学前教育、全职和兼职儿童保育、幼儿园、学龄儿童方案、夏令营和�樟稀９饷肮芾矶Ｓ行牡墓荆皆海驼梗霉局泵溃分藓陀《取９饷较呒彝ソ饩腹咀懿可柙诼砣钊莸奈痔囟亍�

近期收益

我在这里看到了一�玫氖找胬罚�4�戎杏�3�薢ack的一致估计。这位孤零零的姑娘是两�惹暗氖拢徊钜环智褪至恕�

在�榭庵还善庇凶欧浅：玫挠贰�

修正

股票有ZackRank移动的�て诘男拚Ｔ贐FAM的情�兰剖谴砦�

在过去的七天里，2020年全年的预算已经从4.15美元上升到3.22美元。估计往往滞�善奔鄹涠�

2021年的数据也受到了冲�挥心敲创021年的ZacksConsensionestiamte从4.70美元上升到4.52美元。

这些负面修正帮助ZackRank降至最低水平。

估价

BFAM的预期市盈率为24倍，尽管该公司的股票看�獴FAM并不便宜。上�任颐强吹搅舜%的�诮酉吕吹牧酱斡ǜ嬷校咔楸⒖赡芑岬贾乱恍┏脑Ｎ铱吹�5倍的价�谌魏问谐』肪诚露己芨挥�.和2.4x的价�彩怯械愀摺�

在过去的三�壤铮３治榷ǎ�9季度的营业利�季度的净利�３治榷�--但需要改进，才能证�还善钡木薮妒呛侠淼摹�

海图

光�较呒彝ソ饩腹炯鄹彩�

光�较呒彝ソ饩腹炯鄹识-图表-光�较呒彝ソ饩腹尽１�

免费：Zack的最佳股票组合加倍

�颐茄肽略匚颐亲钚碌奶乇妫帽ǜ娼沂玖�5只最有可能在2020年�100%�嗍找娴墓善薄４诱�5人中，扎克斯研究部�焕取っ锥erazMian)亲手�似渲幸晃蛔罹弑ㄐ缘挠攀啤�

这�匦缘目萍脊梢丫嚼沸赂撸缓涞揭桓咕艿募鄹衷冢槐始唇械氖展嚎赡芑崛酶霉驹诳⒄嬲斯ぶ悄艿墓讨谐骄赫允帧Ｄ阍皆缃胝庵Ч善保愕那痹谑找婢驮酱/p>

见5只股票设置为双>>

想要ZacksInvestmentResearch的最新建议�憧梢韵略匚蠢�30天的7只最好的股票。点�训谋ǜ�

光�较呒彝ソ饩腹�(BFAM)：免费股票分��

要在Zacks.com上阅读这篇文章，请点�铩�

Zack投资研究

免�形姆胗商谘斗刖峁┲С郑煌径苑胄畔⒌淖既沸曰啃运斐傻娜魏嗡怀械Ｈ魏卧�