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Are Investors Undervaluing Berry Global Group (BERY) Right Now?

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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.

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.

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 Berry Global Group (BERY - Free Report) . BERY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 8.06 right now. For comparison, its industry sports an average P/E of 14.57. BERY's Forward P/E has been as high as 8.88 and as low as 6.80, with a median of 7.69, 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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. BERY has a P/S ratio of 0.61. This compares to its industry's average P/S of 1.01.

Another great Containers - Paper and Packaging stock you could consider is Greif (GEF - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.

Greif is currently trading with a Forward P/E ratio of 13.13 while its PEG ratio sits at 1.31. Both of the company's metrics compare favorably to its industry's average P/E of 14.57 and average PEG ratio of 4.51.

GEF's Forward P/E has been as high as 19.12 and as low as 10.67, with a median of 13.05. During the same time period, its PEG ratio has been as high as 1.91, as low as 1.07, with a median of 1.35.

Furthermore, Greif holds a P/B ratio of 1.50 and its industry's price-to-book ratio is 9.14. GEF's P/B has been as high as 1.83, as low as 1.29, with a median of 1.50 over the past 12 months.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Berry Global Group and Greif are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BERY and GEF feels like a great value stock at the moment.


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