Back to top

Image: Bigstock

Are Investors Undervaluing Britvic (BTVCY) Right Now?

Read MoreHide Full Article

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

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.

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.

One company to watch right now is Britvic (BTVCY - Free Report) . BTVCY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 12.39. This compares to its industry's average Forward P/E of 19.28. Over the past year, BTVCY's Forward P/E has been as high as 18.70 and as low as 12.26, with a median of 14.88.

Another valuation metric that we should highlight is BTVCY's P/B ratio of 5.55. 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 company's current P/B looks solid when compared to its industry's average P/B of 8.84. Over the past year, BTVCY's P/B has been as high as 6.45 and as low as 3.89, with a median of 5.72.

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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Britvic PLC Sponsored ADR (BTVCY) - free report >>

Published in