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Are Investors Undervaluing Brunswick (BC) Right Now?

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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.

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 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 sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 11.20. This compares to its industry's average Forward P/E of 23.55. BC's Forward P/E has been as high as 17.25 and as low as 10.67, with a median of 12.77, all within the past year.

Another valuation metric that we should highlight is BC's P/B ratio of 4.28. 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 6.40. 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 1.42. This compares to its industry's average P/S of 1.67.

Finally, our model also underscores that BC has a P/CF ratio of 10.27. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 33.67. BC's P/CF has been as high as 42.29 and as low as 9.55, with a median of 12.10, all within the past year.

These are only a few of the key metrics included in Brunswick's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, BC looks like an impressive value stock at the moment.


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