Back to top

Image: Bigstock

Should Value Investors Buy bpost (BPOSY) Stock?

Read MoreHide Full Article

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.

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.

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 stock to keep an eye on is bpost (BPOSY - Free Report) . BPOSY is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 5.43, which compares to its industry's average of 11.52. Over the past 52 weeks, BPOSY's Forward P/E has been as high as 7.58 and as low as 5.43, with a median of 6.61.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. BPOSY has a P/S ratio of 0.2. This compares to its industry's average P/S of 0.53.

If you're looking for another solid Consumer Services - Miscellaneous value stock, take a look at Pactiv Evergreen (PTVE - Free Report) . PTVE is a # 1 (Strong Buy) stock with a Value score of A.

Pactiv Evergreen also has a P/B ratio of 1.23 compared to its industry's price-to-book ratio of 5.78. Over the past year, its P/B ratio has been as high as 2.27, as low as 1.19, with a median of 1.50.

These are just a handful of the figures considered in bpost and Pactiv Evergreen'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 BPOSY and PTVE is an impressive value stock right now.

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

bpost (BPOSY) - free report >>

Pactiv Evergreen Inc. (PTVE) - free report >>

Published in