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Are Investors Undervaluing Britvic PLC Sponsored ADR (BTVCY) Right Now?

Zacks Equity Research

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

Britvic PLC Sponsored ADR (BTVCY) is a stock many investors are watching right now. BTVCY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 14.51, while its industry has an average P/E of 25.34. Over the last 12 months, BTVCY's Forward P/E has been as high as 19.69 and as low as 12.58, with a median of 15.70.

We should also highlight that BTVCY has a P/B ratio of 5.96. 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 company's current P/B looks solid when compared to its industry's average P/B of 8.88. Within the past 52 weeks, BTVCY's P/B has been as high as 6.88 and as low as 5.12, with a median of 5.98.

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


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