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Are Investors Undervaluing Brennt (BNTGY) Right Now?

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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, 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 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 stock to keep an eye on is Brennt (BNTGY - Free Report) . BNTGY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 15.42 right now. For comparison, its industry sports an average P/E of 16.09. Over the past 52 weeks, BNTGY's Forward P/E has been as high as 18.23 and as low as 12.97, with a median of 14.98.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. BNTGY has a P/S ratio of 0.65. This compares to its industry's average P/S of 0.89.

Finally, our model also underscores that BNTGY has a P/CF ratio of 10.30. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 12.18. Over the past 52 weeks, BNTGY's P/CF has been as high as 11.67 and as low as 8.64, with a median of 9.67.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Brennt is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BNTGY feels like a great value stock at the moment.


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