Is Brunswick (BC) Stock Undervalued Right Now?
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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Brunswick (BC). BC is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 12.33, which compares to its industry's average of 28.95. BC's Forward P/E has been as high as 19.59 and as low as 10.92, with a median of 13.10, all within the past year.
Investors should also recognize that BC has a P/B ratio of 4.79. 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 attractive against its industry's average P/B of 7.15. Over the past 12 months, BC's P/B has been as high as 5.56 and as low as 3.20, with a median of 4.53.
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. BC has a P/S ratio of 1.51. This compares to its industry's average P/S of 2.12.
Finally, investors should note that BC has a P/CF ratio of 12.57. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 37.48. Over the past year, BC's P/CF has been as high as 51.56 and as low as 9.55, with a median of 12.83.
These are only a few of the key metrics included in Brunswick'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, BC looks like an impressive value stock at the moment.
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