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Should Value Investors Buy BRP (DOOO) Stock?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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.

BRP (DOOO - Free Report) is a stock many investors are watching right now. DOOO is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 7.67 right now. For comparison, its industry sports an average P/E of 20.61. Over the last 12 months, DOOO's Forward P/E has been as high as 14.67 and as low as 6.80, with a median of 10.04.

Finally, we should also recognize that DOOO has a P/CF ratio of 7.60. 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 19.22. Within the past 12 months, DOOO's P/CF has been as high as 9.35 and as low as 5.75, with a median of 7.93.

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


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