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Should Value Investors Buy BRF (BRFS) Stock?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

BRF (BRFS - Free Report) is a stock many investors are watching right now. BRFS is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 13.56 right now. For comparison, its industry sports an average P/E of 15.95. Over the past 52 weeks, BRFS's Forward P/E has been as high as 44.58 and as low as -13.90, with a median of 2.16.

Investors should also recognize that BRFS has a P/B ratio of 1.20. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. BRFS's current P/B looks attractive when compared to its industry's average P/B of 2.14. Within the past 52 weeks, BRFS's P/B has been as high as 1.29 and as low as 0.70, with a median of 1.03.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. BRFS has a P/S ratio of 0.38. This compares to its industry's average P/S of 0.95.

Finally, our model also underscores that BRFS has a P/CF ratio of 10.71. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. BRFS's current P/CF looks attractive when compared to its industry's average P/CF of 15.83. BRFS's P/CF has been as high as 24.59 and as low as -32.62, with a median of 9.39, all within the past year.

If you're looking for another solid Food - Miscellaneous value stock, take a look at Conagra Brands (CAG - Free Report) . CAG is a # 2 (Buy) stock with a Value score of A.

Conagra Brands is currently trading with a Forward P/E ratio of 11.32 while its PEG ratio sits at 2.98. Both of the company's metrics compare favorably to its industry's average P/E of 15.95 and average PEG ratio of 1.28.

Over the last 12 months, CAG's P/E has been as high as 12.46, as low as 9.47, with a median of 10.87, and its PEG ratio has been as high as 3.33, as low as 1.82, with a median of 2.92.

Conagra Brands sports a P/B ratio of 1.54 as well; this compares to its industry's price-to-book ratio of 2.14. In the past 52 weeks, CAG's P/B has been as high as 1.90, as low as 1.39, with a median of 1.54.

These are just a handful of the figures considered in BRF and Conagra Brands'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 BRFS and CAG is an impressive value stock right now.


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