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Is Betterware de Mexico SAPI de C (BWMX) Stock Undervalued Right Now?

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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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 company value investors might notice is Betterware de Mexico SAPI de C (BWMX - Free Report) . BWMX is currently sporting a Zacks Rank #1 (Strong Buy) and an A for Value. The stock is trading with P/E ratio of 4.52 right now. For comparison, its industry sports an average P/E of 11.71. BWMX's Forward P/E has been as high as 8.29 and as low as 4.47, with a median of 6.90, all within the past year.

Another notable valuation metric for BWMX is its P/B ratio of 5.92. 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. BWMX's current P/B looks attractive when compared to its industry's average P/B of 5.93. Over the past 12 months, BWMX's P/B has been as high as 8.44 and as low as 5.00, with a median of 6.57.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. BWMX has a P/S ratio of 0.44. This compares to its industry's average P/S of 0.65.

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


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