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Is Brother Industries (BRTHY) Stock Undervalued 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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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.

Brother Industries (BRTHY - Free Report) is a stock many investors are watching right now. 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 11.16, while its industry has an average P/E of 13.92. Over the last 12 months, BRTHY's Forward P/E has been as high as 12.98 and as low as 9.52, with a median of 11.24.

Finally, investors will want to recognize that BRTHY has a P/CF ratio of 8.73. 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. BRTHY's P/CF compares to its industry's average P/CF of 9.94. BRTHY's P/CF has been as high as 9.13 and as low as 6.81, with a median of 8.10, all within the past year.

Value investors will likely look at more than just these metrics, but the above data helps show that Brother Industries 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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