Should Value Investors Buy BRF (BRFS) 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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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 BRF (BRFS). BRFS is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
We should also highlight that BRFS has a P/B ratio of 1.25. The P/B is a method of comparing a stock's market value to 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 2.08. Over the past 12 months, BRFS's P/B has been as high as 1.25 and as low as 0.44, with a median of 0.79.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. BRFS has a P/S ratio of 0.26. This compares to its industry's average P/S of 0.77.
If you're looking for another solid Food - Miscellaneous value stock, take a look at Greencore Group (GNCGY). GNCGY is a # 2 (Buy) stock with a Value score of A.
Furthermore, Greencore Group holds a P/B ratio of 0.95 and its industry's price-to-book ratio is 2.08. GNCGY's P/B has been as high as 1.05, as low as 0.64, with a median of 0.94 over the past 12 months.
These are only a few of the key metrics included in BRF and Greencore Group strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, BRFS and GNCGY look like an impressive value stock at the moment.
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BRF S.A. (BRFS) : Free Stock Analysis Report
Greencore Group (GNCGY) : Free Stock Analysis Report
