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Why Braskem (BAK) Could Be a Top Value Stock Pick

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Value investing is always a very popular strategy, and for good reason. After all, who doesn’t want to find stocks that have low PEs, solid outlooks, and decent dividends?

Fortunately for investors looking for this combination, we have identified a strong candidate which may be an impressive value; Braskem S.A. (BAK - Free Report) .

Braskem in Focus

BAK may be an interesting play thanks to its forward PE of 5.7, its P/S ratio of 0.6, and its decent dividend yield of 7.5%. These factors suggest that Braskem is a pretty good value pick, as investors have to pay a relatively low level for each dollar of earnings, and that BAK has decent revenue metrics to back up its earnings.

But before you think that Braskem is just a pure value play, it is important to note that it has been seeing solid activity on the earnings estimate front as well. For current year earnings, the consensus has gone up by 1.5% in the past 30 days, thanks to 1 upward revisions in the past month compared to none lower.

BRASKEM SA PE Ratio (TTM)

This estimate strength is actually enough to push BAK to a Zacks Rank #1 (Strong Buy), suggesting it is poised to outperform. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

So really, Braskem is looking great from a number of angles thanks to its PE below 20, a P/S ratio below one, and a strong Zacks Rank, meaning that this company could be a great choice for value investors at this time.

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