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Is Brother Industries Ltd. (BRTHY) Stock Undervalued Right Now?

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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 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 company to watch right now is Brother Industries Ltd. (BRTHY - Free Report) . BRTHY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 12.10, while its industry has an average P/E of 19.20. Over the past 52 weeks, BRTHY's Forward P/E has been as high as 15.27 and as low as 2.27, with a median of 12.99.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. BRTHY has a P/S ratio of 0.95. This compares to its industry's average P/S of 1.24.

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


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