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Should Value Investors Buy Barloworld (BRRAY) Stock?

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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.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 value investors might notice is Barloworld (BRRAY - Free Report) . BRRAY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 11.09 right now. For comparison, its industry sports an average P/E of 18.44. Over the last 12 months, BRRAY's Forward P/E has been as high as 11.57 and as low as 8.06, with a median of 9.93.

BRRAY is also sporting a PEG ratio of 1.64. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. BRRAY's industry has an average PEG of 2.33 right now. Within the past year, BRRAY's PEG has been as high as 1.71 and as low as 0.52, with a median of 0.72.

These are just a handful of the figures considered in Barloworld'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 BRRAY is an impressive value stock right now.


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