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Are Investors Undervaluing BRP (DOOO) 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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 stock to keep an eye on is BRP (DOOO - Free Report) . DOOO is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 8.77. This compares to its industry's average Forward P/E of 19.52. Over the past 52 weeks, DOOO's Forward P/E has been as high as 19.81 and as low as 7.20, with a median of 11.67.

Finally, investors will want to recognize that DOOO has a P/CF ratio of 6.85. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 15.71. Over the past 52 weeks, DOOO's P/CF has been as high as 18.32 and as low as 5.61, with a median of 8.30.

These figures are just a handful of the metrics value investors tend to look at, but they help show that BRP is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DOOO feels like a great value stock at the moment.


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