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Are Investors Undervaluing Brother Industries (BRTHY) 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
One company to watch right now is Brother Industries (BRTHY - Free Report) . BRTHY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 10.13, which compares to its industry's average of 15.99. Over the past year, BRTHY's Forward P/E has been as high as 12.34 and as low as 9.16, with a median of 10.53.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. BRTHY has a P/S ratio of 0.65. This compares to its industry's average P/S of 0.77.
Finally, our model also underscores that BRTHY has a P/CF ratio of 6.82. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 9.85. Within the past 12 months, BRTHY's P/CF has been as high as 8.96 and as low as 6.53, with a median of 7.92.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Brother Industries is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BRTHY feels like a great value stock at the moment.
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Are Investors Undervaluing Brother Industries (BRTHY) Right Now?
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
One company to watch right now is Brother Industries (BRTHY - Free Report) . BRTHY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 10.13, which compares to its industry's average of 15.99. Over the past year, BRTHY's Forward P/E has been as high as 12.34 and as low as 9.16, with a median of 10.53.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. BRTHY has a P/S ratio of 0.65. This compares to its industry's average P/S of 0.77.
Finally, our model also underscores that BRTHY has a P/CF ratio of 6.82. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 9.85. Within the past 12 months, BRTHY's P/CF has been as high as 8.96 and as low as 6.53, with a median of 7.92.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Brother Industries is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BRTHY feels like a great value stock at the moment.