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Are Investors Undervaluing B&M European Value Retail (BMRRY) 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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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.

B&M European Value Retail (BMRRY - Free Report) is a stock many investors are watching right now. BMRRY is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 7.48. This compares to its industry's average Forward P/E of 15.28. Over the past year, BMRRY's Forward P/E has been as high as 11.22 and as low as 6.44, with a median of 8.50.

Investors will also notice that BMRRY has a PEG ratio of 1.44. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. BMRRY's PEG compares to its industry's average PEG of 1.71. Over the last 12 months, BMRRY's PEG has been as high as 3.99 and as low as 0.90, with a median of 1.29.

Value investors will likely look at more than just these metrics, but the above data helps show that B&M European Value Retail is likely undervalued currently. And when considering the strength of its earnings outlook, BMRRY sticks out as one of the market's strongest value stocks.

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