Back to top

Image: Bigstock

Is Brunswick (BC) Stock Undervalued Right Now?

Read MoreHide Full Article

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.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

Brunswick (BC - Free Report) is a stock many investors are watching right now. BC is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 10.59, which compares to its industry's average of 15.32. Over the last 12 months, BC's Forward P/E has been as high as 13.28 and as low as 8.07, with a median of 9.81.

Investors should also recognize that BC has a P/B ratio of 2.95. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. BC's current P/B looks attractive when compared to its industry's average P/B of 3.67. BC's P/B has been as high as 3.92 and as low as 2.37, with a median of 2.76, over the past year.

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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. BC has a P/S ratio of 0.88. This compares to its industry's average P/S of 1.27.

Finally, investors will want to recognize that BC has a P/CF ratio of 14.74. 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. BC's P/CF compares to its industry's average P/CF of 18.88. Over the past year, BC's P/CF has been as high as 27.28 and as low as 9.54, with a median of 13.25.

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


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Brunswick Corporation (BC) - free report >>

Published in