Should Value Investors Buy Berry (BRY) Stock?
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.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
Berry (BRY) is a stock many investors are watching right now. BRY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 9.28. This compares to its industry's average Forward P/E of 11.10. Over the past year, BRY's Forward P/E has been as high as 26.64 and as low as 3.62, with a median of 8.24.
Investors should also recognize that BRY has a P/B ratio of 0.81. 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 2.30. BRY's P/B has been as high as 1 and as low as 0.63, with a median of 0.82, over the past year.
Finally, we should also recognize that BRY has a P/CF ratio of 1.46. 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. BRY's current P/CF looks attractive when compared to its industry's average P/CF of 4.89. Over the past 52 weeks, BRY's P/CF has been as high as 2.32 and as low as 1.04, with a median of 1.48.
Investors could also keep in mind Marathon Oil (MRO), an Oil and Gas - Integrated - United States stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Shares of Marathon Oil are currently trading at a forward earnings multiple of 7.42 and a PEG ratio of 0.38 compared to its industry's P/E and PEG ratios of 11.10 and 0.58, respectively.
MRO's Forward P/E has been as high as 9.62 and as low as 5.56, with a median of 7.49. During the same time period, its PEG ratio has been as high as 0.68, as low as 0.26, with a median of 0.40.
Additionally, Marathon Oil has a P/B ratio of 1.46 while its industry's price-to-book ratio sits at 2.30. For MRO, this valuation metric has been as high as 2.09, as low as 1.18, with a median of 1.43 over the past year.
These are just a handful of the figures considered in Berry and Marathon Oil'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 BRY and MRO is an impressive value stock right now.
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Berry Corporation (BRY) : Free Stock Analysis Report
Marathon Oil Corporation (MRO) : Free Stock Analysis Report
