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Should Value Investors Buy Fortune Brands Innovations, Inc. (FBIN) 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.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company to watch right now is Fortune Brands Innovations, Inc. (FBIN - Free Report) . FBIN is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.

We should also highlight that FBIN has a P/B ratio of 4.12. 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. This stock's P/B looks solid versus its industry's average P/B of 7.84. Within the past 52 weeks, FBIN's P/B has been as high as 4.66 and as low as 3.14, with a median of 4.10.

Finally, investors will want to recognize that FBIN has a P/CF ratio of 16.56. 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 stock's P/CF looks attractive against its industry's average P/CF of 16.61. Over the past 52 weeks, FBIN's P/CF has been as high as 18.64 and as low as 10.08, with a median of 13.75.

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


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