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Are Investors Undervaluing Berry Global Group (BERY) Right Now?

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to...

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This story originally appeared on Zacks

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.

- Zacks

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 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.

Berry Global Group (BERY) is a stock many investors are watching right now. BERY is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 9.70, which compares to its industry's average of 14.06. Over the past 52 weeks, BERY's Forward P/E has been as high as 11.86 and as low as 8.98, with a median of 10.43.

Investors should also note that BERY holds a PEG ratio of 0.97. 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 1.41. BERY's PEG has been as high as 1.19 and as low as 0.90, with a median of 1.04, all within the past year.

Another notable valuation metric for BERY is its P/B ratio of 3.10. 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 stock's P/B looks attractive against its industry's average P/B of 8.57. 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 3.01.

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 0.72. This compares to its industry's average P/S of 1.03.

These are just a handful of the figures considered in Berry Global Group'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 is an impressive value stock right now.



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