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Is Barloworld (BRRAY) Stock Undervalued 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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 company to watch right now is Barloworld (BRRAY - Free Report) . BRRAY is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 8.60. This compares to its industry's average Forward P/E of 17.46. BRRAY's Forward P/E has been as high as 11.57 and as low as 8.06, with a median of 9.98, all within the past year.

Investors will also notice that BRRAY has a PEG ratio of 1.27. 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. BRRAY's industry currently sports an average PEG of 2.20. Within the past year, BRRAY's PEG has been as high as 1.71 and as low as 0.52, with a median of 0.76.

These are just a handful of the figures considered in Barloworld'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 BRRAY is an impressive value stock right now.


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