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Should Value Investors Buy Brennt (BNTGY) 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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company to watch right now is Brennt (BNTGY - Free Report) . BNTGY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 14.80, which compares to its industry's average of 15.59. BNTGY's Forward P/E has been as high as 18.23 and as low as 12.97, with a median of 15.05, all within the past year.

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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. BNTGY has a P/S ratio of 0.63. This compares to its industry's average P/S of 0.87.

Finally, investors should note that BNTGY has a P/CF ratio of 9.93. 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. BNTGY's P/CF compares to its industry's average P/CF of 11.65. Within the past 12 months, BNTGY's P/CF has been as high as 11.67 and as low as 8.88, with a median of 9.81.

These are only a few of the key metrics included in Brennt'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, BNTGY looks like an impressive value stock at the moment.


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