Back to top

Image: Bigstock

Should Value Investors Buy Bluerock (BRG) Stock?

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, 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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 stock to keep an eye on is Bluerock . BRG is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.

BRG is also sporting a PEG ratio of 1.50. 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. BRG's industry has an average PEG of 3.28 right now. Over the past 52 weeks, BRG's PEG has been as high as 1.52 and as low as 1.36, with a median of 1.46.

Another valuation metric that we should highlight is BRG's P/B ratio of 1.28. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. BRG's current P/B looks attractive when compared to its industry's average P/B of 2.89. Over the past year, BRG's P/B has been as high as 3.19 and as low as 0.87, with a median of 2.44.

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

Published in