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Should Value Investors Buy Britvic (BTVCY) Stock?

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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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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.

Britvic (BTVCY - Free Report) is a stock many investors are watching right now. BTVCY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 13.77, which compares to its industry's average of 19.10. Over the past year, BTVCY's Forward P/E has been as high as 18.70 and as low as 13.35, with a median of 14.91.

Another valuation metric that we should highlight is BTVCY's P/B ratio of 5.63. 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 attractive against its industry's average P/B of 9.60. Over the past year, BTVCY's P/B has been as high as 6.45 and as low as 3.79, with a median of 5.66.

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


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