Back to top

Image: Bigstock

Is Brunswick (BC) a Great Value Stock Right Now?

Read MoreHide Full Article

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company to watch right now is Brunswick (BC - Free Report) . BC is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.

Investors should also note that BC holds a PEG ratio of 1.47. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. BC's PEG compares to its industry's average PEG of 3.14. Within the past year, BC's PEG has been as high as 1.61 and as low as 0.71, with a median of 1.42.

Investors should also recognize that BC has a P/B ratio of 5.10. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. BC's current P/B looks attractive when compared to its industry's average P/B of 7.52. BC's P/B has been as high as 5.56 and as low as 1.85, with a median of 3.82, over the past year.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. BC has a P/S ratio of 1.78. This compares to its industry's average P/S of 2.08.

Value investors will likely look at more than just these metrics, but the above data helps show that Brunswick is likely undervalued currently. And when considering the strength of its earnings outlook, BC sticks out at as one of the market's strongest value stocks.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Brunswick Corporation (BC) - free report >>

Published in