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Is Brunswick (BC) a Great Value Stock Right Now?

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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, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 Brunswick (BC - Free Report) . BC is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 11.39 right now. For comparison, its industry sports an average P/E of 25.60. Over the past 52 weeks, BC's Forward P/E has been as high as 17.25 and as low as 10.92, with a median of 12.80.

Another valuation metric that we should highlight is BC's P/B ratio of 4.33. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. BC's current P/B looks attractive when compared to its industry's average P/B of 7.17. Over the past year, BC's P/B has been as high as 5.56 and as low as 3.20, with a median of 4.49.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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. BC has a P/S ratio of 1.41. This compares to its industry's average P/S of 1.75.

Finally, investors should note that BC has a P/CF ratio of 10.37. 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. BC's current P/CF looks attractive when compared to its industry's average P/CF of 35.16. Over the past 52 weeks, BC's P/CF has been as high as 45.49 and as low as 9.55, with a median of 12.33.

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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