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Is Barloworld (BRRAY) Stock Undervalued Right Now?

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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.

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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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.

Barloworld (BRRAY - Free Report) is a stock many investors are watching right now. BRRAY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 10.79. This compares to its industry's average Forward P/E of 18.62. Over the past year, BRRAY's Forward P/E has been as high as 11.57 and as low as 8.06, with a median of 10.01.

Investors will also notice that BRRAY has a PEG ratio of 1.60. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. BRRAY's industry currently sports an average PEG of 2.35. Over the last 12 months, BRRAY's PEG has been as high as 1.71 and as low as 0.52, with a median of 0.74.

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


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