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Should Value Investors Buy Brunswick (BC) Stock?

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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.

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 stock to keep an eye on is Brunswick (BC - Free Report) . BC 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 11.96, which compares to its industry's average of 24.96. Over the past 52 weeks, BC's Forward P/E has been as high as 12.37 and as low as 7, with a median of 8.28.

Finally, investors should note that BC has a P/CF ratio of 9.33. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 37.14. Over the past 52 weeks, BC's P/CF has been as high as 9.64 and as low as 6.20, with a median of 7.23.

These are only a few of the key metrics included in Brunswick's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, BC looks like an impressive value stock at the moment.


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