Is Brunswick (BC) Stock Undervalued Right Now?

BC

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

Brunswick (BC - Free Report) is a stock many investors are watching right now. BC is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.

BC is also sporting a PEG ratio of 0.99. 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 2.19. Within the past year, BC's PEG has been as high as 1.41 and as low as 0.82, with a median of 1.02.

Another valuation metric that we should highlight is BC's P/B ratio of 3.34. Investors use the P/B ratio to look at a stock's market value versus 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 5.21. Within the past 52 weeks, BC's P/B has been as high as 4.12 and as low as 2.37, with a median of 2.95.

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 0.99. This compares to its industry's average P/S of 1.11.

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.

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