While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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.
Britvic PLC Sponsored ADR (BTVCY - Free Report) is a stock many investors are watching right now. BTVCY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 15.07. This compares to its industry's average Forward P/E of 23.01. Over the past 52 weeks, BTVCY's Forward P/E has been as high as 19.69 and as low as 12.58, with a median of 15.70.
Another valuation metric that we should highlight is BTVCY's P/B ratio of 6.36. 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. BTVCY's current P/B looks attractive when compared to its industry's average P/B of 8.81. Within the past 52 weeks, BTVCY's P/B has been as high as 7.13 and as low as 5.12, with a median of 6.13.
Value investors will likely look at more than just these metrics, but the above data helps show that Britvic PLC Sponsored ADR is likely undervalued currently. And when considering the strength of its earnings outlook, BTVCY sticks out at as one of the market's strongest value stocks.