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Is Bemis (AMCR) 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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 to watch right now is Bemis (AMCR - Free Report) . AMCR is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock holds a P/E ratio of 12.82, while its industry has an average P/E of 17.07. Over the past year, AMCR's Forward P/E has been as high as 20.58 and as low as 8.94, with a median of 16.93.

Another valuation metric that we should highlight is AMCR's P/B ratio of 2.50. 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 stock's P/B looks solid versus its industry's average P/B of 6.71. Over the past 12 months, AMCR's P/B has been as high as 4.35 and as low as 1.78, with a median of 3.02.

Finally, our model also underscores that AMCR has a P/CF ratio of 12.78. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 28.75. Over the past year, AMCR's P/CF has been as high as 19.59 and as low as 5.02, with a median of 12.60.

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


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