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Should Value Investors Buy BellRing Brands (BRBR) Stock?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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.

BellRing Brands (BRBR - Free Report) is a stock many investors are watching right now. BRBR is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.

We also note that BRBR holds a PEG ratio of 1.03. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. BRBR's PEG compares to its industry's average PEG of 2.37. Within the past year, BRBR's PEG has been as high as 11 and as low as 0.97, with a median of 1.36.

Finally, our model also underscores that BRBR has a P/CF ratio of 15.85. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. BRBR's P/CF compares to its industry's average P/CF of 21.23. BRBR's P/CF has been as high as 20.97 and as low as 13.56, with a median of 17.49, all within the past year.

These are just a handful of the figures considered in BellRing Brands's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that BRBR is an impressive value stock right now.


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