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Should Value Investors Buy Brunswick (BC) Stock?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

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 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.

Brunswick (BC - Free Report) is a stock many investors are watching right now. BC is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.

Investors should also note that BC holds a PEG ratio of 1.47. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. BC's industry has an average PEG of 3.32 right now. Over the past 52 weeks, BC's PEG has been as high as 1.61 and as low as 0.50, with a median of 0.99.

Another notable valuation metric for BC is its P/B ratio of 4.70. 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 7.52. Within the past 52 weeks, BC's P/B has been as high as 4.81 and as low as 1.63, with a median of 3.68.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. BC has a P/S ratio of 1.59. This compares to its industry's average P/S of 2.07.

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


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