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Are Investors Undervaluing Betterware de Mexico SAPI de C (BWMX) Right Now?

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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.

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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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.

Betterware de Mexico SAPI de C (BWMX - Free Report) is a stock many investors are watching right now. BWMX is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 6.4. This compares to its industry's average Forward P/E of 11.91. BWMX's Forward P/E has been as high as 7.96 and as low as 4.45, with a median of 6.50, all within the past year.

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. BWMX has a P/S ratio of 0.7. This compares to its industry's average P/S of 0.8.

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


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