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Should Value Investors Buy BellRing Brands (BRBR) Stock?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 BellRing Brands (BRBR - Free Report) . BRBR is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.

Investors should also note that BRBR holds 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. BRBR's industry has an average PEG of 2.27 right now. Over the last 12 months, BRBR's PEG has been as high as 11 and as low as 0.99, with a median of 1.38.

Finally, investors should note that BRBR has a P/CF ratio of 15.20. 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 stock's P/CF looks attractive against its industry's average P/CF of 20.50. Within the past 12 months, BRBR's P/CF has been as high as 20.97 and as low as 13.56, with a median of 17.79.

These are only a few of the key metrics included in BellRing Brands's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, BRBR looks like an impressive value stock at the moment.


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