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Are Investors Undervaluing Brookfield Renewable (BEPC) Right Now?

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.

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.

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 Brookfield Renewable (BEPC). BEPC is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.

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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. BEPC has a P/S ratio of 1.06. This compares to its industry's average P/S of 2.42.

Finally, investors should note that BEPC has a P/CF ratio of 5.94. 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. BEPC's current P/CF looks attractive when compared to its industry's average P/CF of 8.17. Within the past 12 months, BEPC's P/CF has been as high as 7.60 and as low as 3.62, with a median of 5.78.

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

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Brookfield Renewable Corporation (BEPC) : Free Stock Analysis Report

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Zacks Investment Research