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Is BRF (BRFS) Stock Undervalued Right Now?

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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 the latest value, growth, and momentum trends to underscore strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One stock to keep an eye on is BRF (BRFS - Free Report) . BRFS is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 9.72. This compares to its industry's average Forward P/E of 15.41. Over the past 52 weeks, BRFS's Forward P/E has been as high as 44.58 and as low as -13.90, with a median of 14.53.

We should also highlight that BRFS has a P/B ratio of 1.40. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. BRFS's current P/B looks attractive when compared to its industry's average P/B of 2.08. Within the past 52 weeks, BRFS's P/B has been as high as 1.60 and as low as 0.86, with a median of 1.18.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. BRFS has a P/S ratio of 0.47. This compares to its industry's average P/S of 0.87.

Finally, investors will want to recognize that BRFS has a P/CF ratio of 5.44. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 16.90. Over the past 52 weeks, BRFS's P/CF has been as high as 157.18 and as low as 5.37, with a median of 7.35.

These figures are just a handful of the metrics value investors tend to look at, but they help show that BRF is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BRFS feels like a great value stock at the moment.


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