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Are Investors Undervaluing AnheuserBusch InBev (BUD) Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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.

AnheuserBusch InBev (BUD - Free Report) is a stock many investors are watching right now. BUD is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 18.61, while its industry has an average P/E of 20.37. Over the last 12 months, BUD's Forward P/E has been as high as 20.24 and as low as 14.11, with a median of 17.34.

We also note that BUD holds a PEG ratio of 1.92. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. BUD's PEG compares to its industry's average PEG of 2.19. Within the past year, BUD's PEG has been as high as 2.24 and as low as 1.44, with a median of 1.76.

These are just a handful of the figures considered in AnheuserBusch InBev's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that BUD is an impressive value stock right now.


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