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Are Investors Undervaluing Britvic (BTVCY) Right Now?

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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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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.

Britvic (BTVCY - Free Report) is a stock many investors are watching right now. BTVCY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 15.72, which compares to its industry's average of 21.42. Over the last 12 months, BTVCY's Forward P/E has been as high as 18.70 and as low as 10.96, with a median of 14.38.

Investors should also recognize that BTVCY has a P/B ratio of 4.87. 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. BTVCY's current P/B looks attractive when compared to its industry's average P/B of 10.71. BTVCY's P/B has been as high as 5.07 and as low as 3.41, with a median of 4.33, over the past year.

These are only a few of the key metrics included in Britvic's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, BTVCY looks like an impressive value stock at the moment.


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