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Is Brunswick (BC) a Great Value Stock 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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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.

One company value investors might notice is Brunswick (BC - Free Report) . BC is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 11.86, which compares to its industry's average of 23.28. Over the last 12 months, BC's Forward P/E has been as high as 17.25 and as low as 10.92, with a median of 12.91.

We should also highlight that BC has a P/B ratio of 4.48. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 6.56. Within the past 52 weeks, BC's P/B has been as high as 5.56 and as low as 3.20, with a median of 4.48.

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 1.45. This compares to its industry's average P/S of 1.99.

Finally, investors will want to recognize that BC has a P/CF ratio of 10.75. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. BC's current P/CF looks attractive when compared to its industry's average P/CF of 36.55. Within the past 12 months, BC's P/CF has been as high as 46.91 and as low as 9.55, with a median of 12.65.

These are only a few of the key metrics included in Brunswick'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, BC looks like an impressive value stock at the moment.


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