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Are Investors Undervaluing British American Tobacco (BTI) 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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. 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.
One company to watch right now is British American Tobacco (BTI - Free Report) . BTI is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 7.34, while its industry has an average P/E of 11.35. BTI's Forward P/E has been as high as 7.48 and as low as 5.86, with a median of 6.35, all within the past year.
We also note that BTI holds a PEG ratio of 1.80. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. BTI's industry currently sports an average PEG of 2.29. Over the past 52 weeks, BTI's PEG has been as high as 1.84 and as low as 1.11, with a median of 1.24.
These are only a few of the key metrics included in British American Tobacco'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, BTI looks like an impressive value stock at the moment.
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Are Investors Undervaluing British American Tobacco (BTI) Right Now?
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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. 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.
One company to watch right now is British American Tobacco (BTI - Free Report) . BTI is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 7.34, while its industry has an average P/E of 11.35. BTI's Forward P/E has been as high as 7.48 and as low as 5.86, with a median of 6.35, all within the past year.
We also note that BTI holds a PEG ratio of 1.80. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. BTI's industry currently sports an average PEG of 2.29. Over the past 52 weeks, BTI's PEG has been as high as 1.84 and as low as 1.11, with a median of 1.24.
These are only a few of the key metrics included in British American Tobacco'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, BTI looks like an impressive value stock at the moment.