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Should Value Investors Buy Brother Industries (BRTHY) 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.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is Brother Industries (BRTHY - Free Report) . BRTHY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 13.64. This compares to its industry's average Forward P/E of 19.39. Over the last 12 months, BRTHY's Forward P/E has been as high as 13.75 and as low as 9.19, with a median of 11.46.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. BRTHY has a P/S ratio of 0.82. This compares to its industry's average P/S of 1.12.
Finally, investors should note that BRTHY has a P/CF ratio of 7.54. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 20.61. BRTHY's P/CF has been as high as 7.73 and as low as 5.97, with a median of 6.85, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Brother Industries is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BRTHY feels like a great value stock at the moment.
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Should Value Investors Buy Brother Industries (BRTHY) Stock?
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.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is Brother Industries (BRTHY - Free Report) . BRTHY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 13.64. This compares to its industry's average Forward P/E of 19.39. Over the last 12 months, BRTHY's Forward P/E has been as high as 13.75 and as low as 9.19, with a median of 11.46.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. BRTHY has a P/S ratio of 0.82. This compares to its industry's average P/S of 1.12.
Finally, investors should note that BRTHY has a P/CF ratio of 7.54. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 20.61. BRTHY's P/CF has been as high as 7.73 and as low as 5.97, with a median of 6.85, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Brother Industries is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BRTHY feels like a great value stock at the moment.