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Are Investors Undervaluing Britvic (BTVCY) Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

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.

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.

Britvic (BTVCY - Free Report) is a stock many investors are watching right now. BTVCY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 15.08, which compares to its industry's average of 22.08. Over the past 52 weeks, BTVCY's Forward P/E has been as high as 16.72 and as low as 10.96, with a median of 14.48.

Another valuation metric that we should highlight is BTVCY's P/B ratio of 4.66. 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. This company's current P/B looks solid when compared to its industry's average P/B of 9.77. BTVCY's P/B has been as high as 6.14 and as low as 3.60, with a median of 4.77, over the past year.

Value investors will likely look at more than just these metrics, but the above data helps show that Britvic is likely undervalued currently. And when considering the strength of its earnings outlook, BTVCY sticks out at as one of the market's strongest value stocks.


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