The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
Berry Petroleum (BRY - Free Report) is a stock many investors are watching right now. BRY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 7.51 right now. For comparison, its industry sports an average P/E of 13.84. BRY's Forward P/E has been as high as 9.42 and as low as 3.65, with a median of 7.11, all within the past year.
Investors will also notice that BRY has a PEG ratio of 0.50. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. BRY's industry currently sports an average PEG of 0.87. Over the last 12 months, BRY's PEG has been as high as 0.63 and as low as 0.24, with a median of 0.47.
Investors should also recognize that BRY has a P/B ratio of 0.92. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2.04. Within the past 52 weeks, BRY's P/B has been as high as 3 and as low as 0.71, with a median of 1.04.
These are only a few of the key metrics included in Berry Petroleum'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, BRY looks like an impressive value stock at the moment.