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Is Berry (BRY) a Great Value Stock Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

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.

Berry (BRY - Free Report) is a stock many investors are watching right now. BRY is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value.

Another valuation metric that we should highlight is BRY's P/B ratio of 0.99. The P/B is a method of comparing a stock's market value to 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 2.06. Over the past year, BRY's P/B has been as high as 1.59 and as low as 0.58, with a median of 1.04.

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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. BRY has a P/S ratio of 1.07. This compares to its industry's average P/S of 2.85.

If you're looking for another solid Oil and Gas - Integrated - United States value stock, take a look at Marathon Oil (MRO - Free Report) . MRO is a # 2 (Buy) stock with a Value score of A.

Shares of Marathon Oil are currently trading at a forward earnings multiple of 4.64 and a PEG ratio of 0.32 compared to its industry's P/E and PEG ratios of 6.60 and 0.29, respectively.

MRO's Forward P/E has been as high as 22.74 and as low as 4.51, with a median of 8.41. During the same time period, its PEG ratio has been as high as 0.91, as low as 0.26, with a median of 0.44.

Marathon Oil also has a P/B ratio of 1.40 compared to its industry's price-to-book ratio of 2.06. Over the past year, its P/B ratio has been as high as 2, as low as 0.79, with a median of 1.24.

These are just a handful of the figures considered in Berry and Marathon Oil's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that BRY and MRO is an impressive value stock right now.


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