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.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
BUNGE GLOBAL SA (BG) is a stock many investors are watching right now. BG is currently sporting a Zacks Rank #2 (Buy) and an A for Value.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. BG has a P/S ratio of 0.29. This compares to its industry's average P/S of 0.45.
Finally, we should also recognize that BG has a P/CF ratio of 5.80. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 6.24. BG's P/CF has been as high as 8.62 and as low as 5.35, with a median of 6.69, all within the past year.
These are only a few of the key metrics included in BUNGE GLOBAL SA'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, BG looks like an impressive value stock at the moment.
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Bunge Global SA (BG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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