Is Berry Global Group (BERY) a Great Value Stock Right Now?
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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. 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 company value investors might notice is Berry Global Group (BERY). BERY is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 9.73. This compares to its industry's average Forward P/E of 14.24. BERY's Forward P/E has been as high as 11.86 and as low as 8.98, with a median of 10.43, all within the past year.
Investors should also note that BERY holds a PEG ratio of 0.97. 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. BERY's PEG compares to its industry's average PEG of 1.43. Over the past 52 weeks, BERY's PEG has been as high as 1.19 and as low as 0.90, with a median of 1.04.
We should also highlight that BERY has a P/B ratio of 3.13. The P/B ratio is used to compare a stock's market value with 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 8.71. Within the past 52 weeks, BERY's P/B has been as high as 3.57 and as low as 2.55, with a median of 3.02.
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 0.71. This compares to its industry's average P/S of 1.04.
These are only a few of the key metrics included in Berry Global Group'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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