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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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 Brunswick (BC - Free Report) . BC is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 16.76 right now. For comparison, its industry sports an average P/E of 25.73. Over the past year, BC's Forward P/E has been as high as 18.50 and as low as 9.50, with a median of 14.45.
Another notable valuation metric for BC is its P/B ratio of 2.17. 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 company's current P/B looks solid when compared to its industry's average P/B of 4.30. Over the past 12 months, BC's P/B has been as high as 2.79 and as low as 1.47, with a median of 2.18.
Value investors also use the P/S ratio. The P/S ratio 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. BC has a P/S ratio of 0.82. This compares to its industry's average P/S of 1.24.
Finally, investors will want to recognize that BC has a P/CF ratio of 12.53. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. BC's P/CF compares to its industry's average P/CF of 32.79. Over the past 52 weeks, BC's P/CF has been as high as 13.22 and as low as 7.48, with a median of 9.85.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Brunswick is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BC feels like a great value stock at the moment.
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Should Value Investors Buy Brunswick (BC) Stock?
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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 Brunswick (BC - Free Report) . BC is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 16.76 right now. For comparison, its industry sports an average P/E of 25.73. Over the past year, BC's Forward P/E has been as high as 18.50 and as low as 9.50, with a median of 14.45.
Another notable valuation metric for BC is its P/B ratio of 2.17. 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 company's current P/B looks solid when compared to its industry's average P/B of 4.30. Over the past 12 months, BC's P/B has been as high as 2.79 and as low as 1.47, with a median of 2.18.
Value investors also use the P/S ratio. The P/S ratio 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. BC has a P/S ratio of 0.82. This compares to its industry's average P/S of 1.24.
Finally, investors will want to recognize that BC has a P/CF ratio of 12.53. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. BC's P/CF compares to its industry's average P/CF of 32.79. Over the past 52 weeks, BC's P/CF has been as high as 13.22 and as low as 7.48, with a median of 9.85.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Brunswick is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BC feels like a great value stock at the moment.