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Should Value Investors Buy Banco Do Brasil (BDORY) Stock?

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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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 company to watch right now is Banco Do Brasil (BDORY - Free Report) . BDORY 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 3.38, which compares to its industry's average of 8.17. BDORY's Forward P/E has been as high as 5.16 and as low as 2.83, with a median of 3.51, all within the past year.

Another notable valuation metric for BDORY is its P/B ratio of 0.68. 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 1.59. Over the past year, BDORY's P/B has been as high as 0.80 and as low as 0.54, with a median of 0.68.

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. BDORY has a P/S ratio of 0.54. This compares to its industry's average P/S of 1.42.

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


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