Should Value Investors Buy Betterware de Mexico SAPI de C (BWMX) Stock?

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company to watch right now is Betterware de Mexico SAPI de C (BWMX). BWMX is currently sporting a Zacks Rank #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 6.25. This compares to its industry's average Forward P/E of 16.90. Over the past year, BWMX's Forward P/E has been as high as 7.96 and as low as 4.45, with a median of 6.47.

Investors should also recognize that BWMX has a P/B ratio of 8.26. The P/B is a method of comparing a stock's market value to 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 17.69. Over the past 12 months, BWMX's P/B has been as high as 8.61 and as low as 5.33, with a median of 6.89.

Finally, our model also underscores that BWMX has a P/CF ratio of 10.17. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. BWMX's current P/CF looks attractive when compared to its industry's average P/CF of 15.77. Over the past 52 weeks, BWMX's P/CF has been as high as 10.59 and as low as 5.27, with a median of 6.88.

Value investors will likely look at more than just these metrics, but the above data helps show that Betterware de Mexico SAPI de C is likely undervalued currently. And when considering the strength of its earnings outlook, BWMX sticks out as one of the market's strongest value stocks.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research