Advertisement
UK markets closed

  • NIKKEI 225

    37,552.16
    +113.55 (+0.30%)
     

  • HANG SENG

    16,828.93
    +317.24 (+1.92%)
     

  • CRUDE OIL

    83.38
    +1.48 (+1.81%)
     

  • GOLD FUTURES

    2,338.20
    -8.20 (-0.35%)
     

  • DOW

    38,481.61
    +241.63 (+0.63%)
     

  • Bitcoin GBP

    53,599.68
    +219.51 (+0.41%)
     

  • CMC Crypto 200

    1,434.89
    +20.13 (+1.42%)
     

  • NASDAQ Composite

    15,707.99
    +256.68 (+1.66%)
     

  • UK FTSE All Share

    4,378.75
    +16.15 (+0.37%)
     
Money:

What is the true cost of the UK state pension?

To get a sense of the true value of the state pension, you can look at how much you would need to save to match it yourself

Are Investors Undervaluing Berry Petroleum (BRY) Right Now?

Zacks Equity Research
·2-min read

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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 value investors might notice is Berry Petroleum (BRY). BRY is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value.

ADVERTISEMENT

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. BRY has a P/S ratio of 0.78. This compares to its industry's average P/S of 0.79.

Finally, investors will want to recognize that BRY has a P/CF ratio of 2.04. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. BRY's current P/CF looks attractive when compared to its industry's average P/CF of 5.44. Over the past 52 weeks, BRY's P/CF has been as high as 5.18 and as low as 1.98, with a median of 3.15.

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


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
 
Berry Petroleum Corporation (BRY) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research