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Is Berry Global (BERY) Stock Undervalued Right Now?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

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.

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.

One stock to keep an eye on is Berry Global (BERY - Free Report) . BERY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 9.52. This compares to its industry's average Forward P/E of 17.05. BERY's Forward P/E has been as high as 14.85 and as low as 6.19, with a median of 10.68, all within the past year.

BERY is also sporting a PEG ratio of 0.76. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. BERY's PEG compares to its industry's average PEG of 1.92. Over the last 12 months, BERY's PEG has been as high as 1.49 and as low as 0.50, with a median of 0.87.

We should also highlight that BERY has a P/B ratio of 3.04. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. BERY's current P/B looks attractive when compared to its industry's average P/B of 6.71. Over the past year, BERY's P/B has been as high as 5 and as low as 2, with a median of 3.41.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. BERY has a P/S ratio of 0.51. This compares to its industry's average P/S of 0.92.

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


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