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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 stock to keep an eye on is Berry Global Group (BERY). BERY is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 9.61. This compares to its industry’s average Forward P/E of 13.98. Over the past year, BERY’s Forward P/E has been as high as 11.86 and as low as 8.98, with a median of 10.43.
BERY is also sporting a PEG ratio of 0.96. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. BERY’s PEG compares to its industry’s average PEG of 1.46. Over the last 12 months, BERY’s PEG has been as high as 1.19 and as low as 0.90, with a median of 1.04.
Another notable valuation metric for BERY is its P/B ratio of 3.06. The P/B ratio pits a stock’s market value against its book value, which is defined as total assets minus total liabilities. BERY’s current P/B looks attractive when compared to its industry’s average P/B of 8.47. Within the past 52 weeks, BERY’s P/B has been as high as 3.57 and as low as 2.55, with a median of 3.05.
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 0.69. This compares to its industry’s average P/S of 1.06.
If you’re looking for another solid Containers – Paper and Packaging value stock, take a look at Greif (GEF). GEF is a # 1 (Strong Buy) stock with a Value score of A.
Greif is currently trading with a Forward P/E ratio of 9.94 while its PEG ratio sits at 0.99. Both of the company’s metrics compare favorably to its industry’s average P/E of 13.98 and average PEG ratio of 1.46.
Over the past year, GEF’s P/E has been as high as 16.95, as low as 9.69, with a median of 12.73; its PEG ratio has been as high as 1.70, as low as 0.97, with a median of 1.04 during the same time period.
Greif sports a P/B ratio of 1.90 as well; this compares to its industry’s price-to-book ratio of 8.47. In the past 52 weeks, GEF’s P/B has been as high as 2.37, as low as 1.78, with a median of 2.06.
These are just a handful of the figures considered in Berry Global Group and Greif’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 BERY and GEF is an impressive value stock right now.
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Berry Global Group, Inc. (BERY): Free Stock Analysis Report
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