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Are Investors Undervaluing Berry Global (BERY) Right Now?

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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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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.

Berry Global (BERY - Free Report) is a stock many investors are watching right now. BERY is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 10.71. This compares to its industry's average Forward P/E of 17.36. Over the last 12 months, BERY's Forward P/E has been as high as 14.90 and as low as 8.86, with a median of 12.74.

BERY is also sporting a PEG ratio of 0.86. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. BERY's industry currently sports an average PEG of 1.95. Over the last 12 months, BERY's PEG has been as high as 1.49 and as low as 0.61, with a median of 0.98.

Another notable valuation metric for BERY is its P/B ratio of 3.68. 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. This stock's P/B looks attractive against its industry's average P/B of 6.71. BERY's P/B has been as high as 5.01 and as low as 3.05, with a median of 4.18, over the past year.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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. BERY has a P/S ratio of 0.67. This compares to its industry's average P/S of 1.07.

These are only a few of the key metrics included in Berry Global'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, BERY looks like an impressive value stock at the moment.


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