We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Should Value Investors Buy These Utilities Stocks?
Read MoreHide Full Article
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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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.
One company to watch right now is Centrica (CPYYY - Free Report) . CPYYY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 9.17, while its industry has an average P/E of 15.01. Over the last 12 months, CPYYY's Forward P/E has been as high as 23.60 and as low as 8.11, with a median of 9.98.
CPYYY is also sporting a PEG ratio of 1.75. 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. CPYYY's PEG compares to its industry's average PEG of 2.25. Within the past year, CPYYY's PEG has been as high as 1.88 and as low as 1.72, with a median of 1.80.
We should also highlight that CPYYY has a P/B ratio of 1.38. 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. CPYYY's current P/B looks attractive when compared to its industry's average P/B of 2. Over the past 12 months, CPYYY's P/B has been as high as 2.64 and as low as 0.91, with a median of 1.38.
Another great Utility - Gas Distribution stock you could consider is UGI (UGI - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Shares of UGI are currently trading at a forward earnings multiple of 13.29 and a PEG ratio of 1.66 compared to its industry's P/E and PEG ratios of 15.01 and 2.25, respectively.
Over the last 12 months, UGI's P/E has been as high as 15.14, as low as 12.15, with a median of 13.73, and its PEG ratio has been as high as 1.89, as low as 1.52, with a median of 1.71.
Furthermore, UGI holds a P/B ratio of 1.75 and its industry's price-to-book ratio is 2. UGI's P/B has been as high as 2.07, as low as 1.62, with a median of 1.87 over the past 12 months.
These are just a handful of the figures considered in Centrica and UGI'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 CPYYY and UGI is an impressive value stock right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Should Value Investors Buy These Utilities Stocks?
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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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.
One company to watch right now is Centrica (CPYYY - Free Report) . CPYYY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 9.17, while its industry has an average P/E of 15.01. Over the last 12 months, CPYYY's Forward P/E has been as high as 23.60 and as low as 8.11, with a median of 9.98.
CPYYY is also sporting a PEG ratio of 1.75. 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. CPYYY's PEG compares to its industry's average PEG of 2.25. Within the past year, CPYYY's PEG has been as high as 1.88 and as low as 1.72, with a median of 1.80.
We should also highlight that CPYYY has a P/B ratio of 1.38. 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. CPYYY's current P/B looks attractive when compared to its industry's average P/B of 2. Over the past 12 months, CPYYY's P/B has been as high as 2.64 and as low as 0.91, with a median of 1.38.
Another great Utility - Gas Distribution stock you could consider is UGI (UGI - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Shares of UGI are currently trading at a forward earnings multiple of 13.29 and a PEG ratio of 1.66 compared to its industry's P/E and PEG ratios of 15.01 and 2.25, respectively.
Over the last 12 months, UGI's P/E has been as high as 15.14, as low as 12.15, with a median of 13.73, and its PEG ratio has been as high as 1.89, as low as 1.52, with a median of 1.71.
Furthermore, UGI holds a P/B ratio of 1.75 and its industry's price-to-book ratio is 2. UGI's P/B has been as high as 2.07, as low as 1.62, with a median of 1.87 over the past 12 months.
These are just a handful of the figures considered in Centrica and UGI'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 CPYYY and UGI is an impressive value stock right now.