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Are Investors Undervaluing Brother Industries (BRTHY) 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.

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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company to watch right now is Brother Industries (BRTHY - Free Report) . BRTHY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 10.27. This compares to its industry's average Forward P/E of 11.54. Over the past year, BRTHY's Forward P/E has been as high as 12.34 and as low as 9.52, with a median of 10.92.

Finally, investors should note that BRTHY has a P/CF ratio of 8.19. 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 8.47. Over the past year, BRTHY's P/CF has been as high as 8.96 and as low as 6.81, with a median of 8.19.

Universal Electronics (UEIC - Free Report) may be another strong Electronics - Miscellaneous Products stock to add to your shortlist. UEIC is a # 2 (Buy) stock with a Value grade of A.

Universal Electronics is currently trading with a Forward P/E ratio of 6.88 while its PEG ratio sits at 1.02. Both of the company's metrics compare favorably to its industry's average P/E of 11.54 and average PEG ratio of 1.17.


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