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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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 value investors might notice is BellRing Brands (BRBR). BRBR is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
Investors should also note that BRBR holds a PEG ratio of 1.28. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. BRBR's industry currently sports an average PEG of 2.33. Over the last 12 months, BRBR's PEG has been as high as 11 and as low as 1.17, with a median of 1.41.
Finally, we should also recognize that BRBR has a P/CF ratio of 20.25. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. BRBR's current P/CF looks attractive when compared to its industry's average P/CF of 20.94. Within the past 12 months, BRBR's P/CF has been as high as 21.06 and as low as 14.46, with a median of 18.76.
These are just a handful of the figures considered in BellRing Brands'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 BRBR is an impressive value stock right now.
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BellRing Brands, Inc. (BRBR) : Free Stock Analysis Report
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