Investors looking for stocks in the Business - Services sector might want to consider either Bright Horizons Family Solutions (BFAM) or UL Solutions Inc. (ULS). But which of these two stocks is more attractive to value investors?
Investors looking for stocks in the Business - Services sector might want to consider either Bright Horizons Family Solutions (BFAM) or UL Solutions Inc. (ULS). But which of these two stocks presents investors with the better value opportunity right now?
Bright Horizons Family Solutions remains a hold as Back-up Care drives growth but Full Service lags on enrollment and occupancy. BFAM's Q2 2026 saw Back-up Care revenue up 19% with a 26% margin, now contributing over half of total operating income. Full Service revenue grew just 3%, with volume muted and capacity running ahead of occupancy, raising concerns for long-term EBIT targets.
Although the revenue and EPS for Bright Horizons (BFAM) give a sense of how its business performed in the quarter ended June 2026, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.
Bright Horizons Family Solutions Inc. (BFAM) Q2 2026 Earnings Call Transcript
Bright Horizons Family Solutions (BFAM) came out with quarterly earnings of $1.28 per share, beating the Zacks Consensus Estimate of $1.21 per share. This compares to earnings of $1.07 per share a year ago.
Bright Horizons Family Solutions Inc. (BFAM) Q1 2026 Earnings Call Transcript
While the top- and bottom-line numbers for Bright Horizons (BFAM) give a sense of how the business performed in the quarter ended March 2026, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
Investors interested in Business - Services stocks are likely familiar with Bright Horizons Family Solutions (BFAM) and APi (APG). But which of these two stocks is more attractive to value investors?
Bright Horizons (BFAM) is positioned for a re-rating if it delivers on full-year guidance after closing 5% of loss-making centers. BFAM's high-margin back-up care segment drives growth, while full-service closures enhance the overall operating profile and margin mix. The stock trades at a beaten-down forward P/E of 15.5x, with a price target of $121 (43% upside) based on 22x $5.50 EPS.
Bright Horizons (BFAM) possesses solid growth attributes, which could help it handily outperform the market.
Bright Horizons (BFAM) has been upgraded to a Zacks Rank #2 (Buy), reflecting growing optimism about the company's earnings prospects. This might drive the stock higher in the near term.