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Is BellRing Brands (BRBR) 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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

BellRing Brands (BRBR - Free Report) is a stock many investors are watching right now. BRBR is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.

BRBR is also sporting a PEG ratio of 0.97. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. BRBR's PEG compares to its industry's average PEG of 2.28. Over the last 12 months, BRBR's PEG has been as high as 11 and as low as 0.95, with a median of 1.35.

Finally, investors will want to recognize that BRBR has a P/CF ratio of 15.27. 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. BRBR's current P/CF looks attractive when compared to its industry's average P/CF of 20.87. 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 17.18.

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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