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Are Investors Undervaluing BRF (BRFS) Right Now?

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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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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 company to watch right now is BRF (BRFS - Free Report) . BRFS is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 13.23 right now. For comparison, its industry sports an average P/E of 17.94. Over the last 12 months, BRFS's Forward P/E has been as high as 503.67 and as low as 5.93, with a median of 16.94.

Finally, we should also recognize that BRFS has a P/CF ratio of 3.92. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 15.18. Within the past 12 months, BRFS's P/CF has been as high as 11.65 and as low as -66.48, with a median of 3.76.

Value investors will likely look at more than just these metrics, but the above data helps show that BRF is likely undervalued currently. And when considering the strength of its earnings outlook, BRFS sticks out at as one of the market's strongest value stocks.


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