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Should Value Investors Buy Brother Industries (BRTHY) 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
Brother Industries (BRTHY - Free Report) is a stock many investors are watching right now. BRTHY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 11.29, which compares to its industry's average of 18.90. Over the past 52 weeks, BRTHY's Forward P/E has been as high as 12.47 and as low as 9.16, with a median of 10.04.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. BRTHY has a P/S ratio of 0.71. This compares to its industry's average P/S of 0.93.
Finally, our model also underscores that BRTHY has a P/CF ratio of 7.10. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. BRTHY's P/CF compares to its industry's average P/CF of 14.83. Within the past 12 months, BRTHY's P/CF has been as high as 7.60 and as low as 4.97, with a median of 6.02.
Value investors will likely look at more than just these metrics, but the above data helps show that Brother Industries is likely undervalued currently. And when considering the strength of its earnings outlook, BRTHY sticks out at as one of the market's strongest value stocks.
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Should Value Investors Buy Brother Industries (BRTHY) Stock?
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
Brother Industries (BRTHY - Free Report) is a stock many investors are watching right now. BRTHY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 11.29, which compares to its industry's average of 18.90. Over the past 52 weeks, BRTHY's Forward P/E has been as high as 12.47 and as low as 9.16, with a median of 10.04.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. BRTHY has a P/S ratio of 0.71. This compares to its industry's average P/S of 0.93.
Finally, our model also underscores that BRTHY has a P/CF ratio of 7.10. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. BRTHY's P/CF compares to its industry's average P/CF of 14.83. Within the past 12 months, BRTHY's P/CF has been as high as 7.60 and as low as 4.97, with a median of 6.02.
Value investors will likely look at more than just these metrics, but the above data helps show that Brother Industries is likely undervalued currently. And when considering the strength of its earnings outlook, BRTHY sticks out at as one of the market's strongest value stocks.