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Should Value Investors Buy Britvic (BTVCY) Stock?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

Britvic (BTVCY - Free Report) is a stock many investors are watching right now. BTVCY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 14.01. This compares to its industry's average Forward P/E of 22.29. Over the past year, BTVCY's Forward P/E has been as high as 16.72 and as low as 10.96, with a median of 14.40.

Another notable valuation metric for BTVCY is its P/B ratio of 4.35. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 9.89. Over the past 12 months, BTVCY's P/B has been as high as 6.14 and as low as 3.60, with a median of 4.72.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Britvic is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BTVCY feels like a great value stock at the moment.


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