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Are Investors Undervaluing Bunzl (BZLFY) 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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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.

Bunzl (BZLFY) is a stock many investors are watching right now. BZLFY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 17.97. This compares to its industry's average Forward P/E of 19.69. Over the last 12 months, BZLFY's Forward P/E has been as high as 18.83 and as low as 13.93, with a median of 17.18.

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We also note that BZLFY holds a PEG ratio of 1.39. 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. BZLFY's PEG compares to its industry's average PEG of 2.19. BZLFY's PEG has been as high as 14.58 and as low as 0.53, with a median of 3.50, all within the past year.

These are just a handful of the figures considered in Bunzl'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 BZLFY is an impressive value stock right now.

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Bunzl PLC (BZLFY) : Free Stock Analysis Report

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Zacks Investment Research