Is Britvic PLC Sponsored ADR (BTVCY) Stock Undervalued 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.
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.
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.
Britvic PLC Sponsored ADR (BTVCY) is a stock many investors are watching right now. BTVCY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 15.29, which compares to its industry's average of 22.36. Over the last 12 months, BTVCY's Forward P/E has been as high as 19.69 and as low as 12.58, with a median of 15.71.
Another notable valuation metric for BTVCY is its P/B ratio of 6.38. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 8.88. BTVCY's P/B has been as high as 7.13 and as low as 5.11, with a median of 5.90, over the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Britvic PLC Sponsored ADR is likely undervalued currently. And when considering the strength of its earnings outlook, BTVCY sticks out at as one of the market's strongest value stocks.
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