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Are Investors Undervaluing BRF (BRFS) 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.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company to watch right now is BRF (BRFS - Free Report) . BRFS is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.

Investors should also recognize that BRFS has a P/B ratio of 0.83. 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 2.12. Within the past 52 weeks, BRFS's P/B has been as high as 2.66 and as low as 0.73, with a median of 1.14.

Finally, our model also underscores that BRFS has a P/CF ratio of 9.59. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 16.60. BRFS's P/CF has been as high as 13.87 and as low as 3.92, with a median of 8.26, all within the past year.

Another great Food - Miscellaneous stock you could consider is US Foods (USFD - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.

Shares of US Foods currently holds a Forward P/E ratio of 10.17, and its PEG ratio is 0.51. In comparison, its industry sports average P/E and PEG ratios of 16.96 and 1.98.

Over the last 12 months, USFD's P/E has been as high as 22.96, as low as 10.17, with a median of 13.63, and its PEG ratio has been as high as 1.15, as low as 0.51, with a median of 0.71.

US Foods sports a P/B ratio of 1.56 as well; this compares to its industry's price-to-book ratio of 2.12. In the past 52 weeks, USFD's P/B has been as high as 2.35, as low as 1.56, with a median of 2.05.

These are only a few of the key metrics included in BRF and US Foods strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, BRFS and USFD look like an impressive value stock at the moment.


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