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Should Value Investors Buy Berry Global (BERY) Stock?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is Berry Global (BERY - Free Report) . BERY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 12.84. This compares to its industry's average Forward P/E of 13.55. Over the last 12 months, BERY's Forward P/E has been as high as 17.07 and as low as 10.71, with a median of 12.59.
Investors will also notice that BERY has a PEG ratio of 0.77. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. BERY's PEG compares to its industry's average PEG of 1.22. Over the past 52 weeks, BERY's PEG has been as high as 1.24 and as low as 0.54, with a median of 0.69.
Another notable valuation metric for BERY is its P/B ratio of 4.59. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 4.74. Within the past 52 weeks, BERY's P/B has been as high as 6.73 and as low as 3.75, with a median of 4.74.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. BERY has a P/S ratio of 0.83. This compares to its industry's average P/S of 1.01.
Finally, investors will want to recognize that BERY has a P/CF ratio of 6.55. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. BERY's P/CF compares to its industry's average P/CF of 11.36. Over the past 52 weeks, BERY's P/CF has been as high as 8.34 and as low as 5.32, with a median of 6.51.
These are just a handful of the figures considered in Berry Global's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that BERY is an impressive value stock right now.
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Should Value Investors Buy Berry Global (BERY) Stock?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is Berry Global (BERY - Free Report) . BERY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 12.84. This compares to its industry's average Forward P/E of 13.55. Over the last 12 months, BERY's Forward P/E has been as high as 17.07 and as low as 10.71, with a median of 12.59.
Investors will also notice that BERY has a PEG ratio of 0.77. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. BERY's PEG compares to its industry's average PEG of 1.22. Over the past 52 weeks, BERY's PEG has been as high as 1.24 and as low as 0.54, with a median of 0.69.
Another notable valuation metric for BERY is its P/B ratio of 4.59. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 4.74. Within the past 52 weeks, BERY's P/B has been as high as 6.73 and as low as 3.75, with a median of 4.74.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. BERY has a P/S ratio of 0.83. This compares to its industry's average P/S of 1.01.
Finally, investors will want to recognize that BERY has a P/CF ratio of 6.55. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. BERY's P/CF compares to its industry's average P/CF of 11.36. Over the past 52 weeks, BERY's P/CF has been as high as 8.34 and as low as 5.32, with a median of 6.51.
These are just a handful of the figures considered in Berry Global's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that BERY is an impressive value stock right now.