Back to top

Image: Bigstock

Should Value Investors Buy Bavarian Nordic (BVNRY) Stock?

Read MoreHide Full Article

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

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 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 Bavarian Nordic (BVNRY - Free Report) . BVNRY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.

Another valuation metric that we should highlight is BVNRY's P/B ratio of 1.67. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 3.88. Over the past year, BVNRY's P/B has been as high as 2.17 and as low as 1.04, with a median of 1.29.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. BVNRY has a P/S ratio of 2.84. This compares to its industry's average P/S of 6.74.

Finally, our model also underscores that BVNRY has a P/CF ratio of 9.41. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 15.68. BVNRY's P/CF has been as high as 12.22 and as low as 4.51, with a median of 6.08, all within the past year.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Bavarian Nordic is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BVNRY feels like a great value stock at the moment.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Bavarian Nordic (BVNRY) - free report >>

Published in