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Should Value Investors Buy AnheuserBusch InBev (BUD) Stock?

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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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company value investors might notice is AnheuserBusch InBev (BUD - Free Report) . BUD is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 14.56 right now. For comparison, its industry sports an average P/E of 16.65. Over the last 12 months, BUD's Forward P/E has been as high as 18.98 and as low as 12.87, with a median of 16.19.

We also note that BUD holds a PEG ratio of 1.55. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. BUD's industry currently sports an average PEG of 2.11. BUD's PEG has been as high as 2.02 and as low as 1.33, with a median of 1.64, all within the past year.

These are only a few of the key metrics included in AnheuserBusch InBev's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, BUD looks like an impressive value stock at the moment.

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