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Is Berry Petroleum (BRY) a Great Value Stock 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.

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 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.

One company value investors might notice is Berry Petroleum (BRY - Free Report) . BRY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 6.49. This compares to its industry's average Forward P/E of 13.35. BRY's Forward P/E has been as high as 9.42 and as low as 3.65, with a median of 7.03, all within the past year.

Investors will also notice that BRY has a PEG ratio of 0.43. 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 PEG compares to its industry's average PEG of 1.10. Over the past 52 weeks, BRY's PEG has been as high as 0.63 and as low as 0.24, with a median of 0.47.

We should also highlight that BRY has a P/B ratio of 0.92. 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 company's current P/B looks solid when compared to its industry's average P/B of 1.91. Over the past year, BRY's P/B has been as high as 3 and as low as 0.71, with a median of 1.03.

Finally, investors should note that BRY has a P/CF ratio of 4.24. 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. BRY's P/CF compares to its industry's average P/CF of 5.33. Over the past year, BRY's P/CF has been as high as 5.18 and as low as 3.10, with a median of 4.24.

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


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