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Should Value Investors Buy These Utilities Stocks?
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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, 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 Telefonica (TEF - Free Report) . TEF is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 18.51. This compares to its industry's average Forward P/E of 24.52. Over the last 12 months, TEF's Forward P/E has been as high as 18.51 and as low as 2.13, with a median of 10.08.
TEF is also sporting a PEG ratio of 1.17. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. TEF's PEG compares to its industry's average PEG of 1.77. Within the past year, TEF's PEG has been as high as 1.17 and as low as 0.13, with a median of 0.77.
Investors should also recognize that TEF has a P/B ratio of 0.72. 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. TEF's current P/B looks attractive when compared to its industry's average P/B of 2.11. Within the past 52 weeks, TEF's P/B has been as high as 1.31 and as low as 0.61, with a median of 0.70.
Investors could also keep in mind Telekom Austria , an Diversified Communication Services stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Telekom Austria also has a P/B ratio of 1.60 compared to its industry's price-to-book ratio of 2.11. Over the past year, its P/B ratio has been as high as 1.75, as low as 1.52, with a median of 1.60.
These are only a few of the key metrics included in Telefonica and Telekom Austria strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, TEF and TKAGY look like an impressive value stock at the moment.
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Should Value Investors Buy These Utilities Stocks?
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, 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 Telefonica (TEF - Free Report) . TEF is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 18.51. This compares to its industry's average Forward P/E of 24.52. Over the last 12 months, TEF's Forward P/E has been as high as 18.51 and as low as 2.13, with a median of 10.08.
TEF is also sporting a PEG ratio of 1.17. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. TEF's PEG compares to its industry's average PEG of 1.77. Within the past year, TEF's PEG has been as high as 1.17 and as low as 0.13, with a median of 0.77.
Investors should also recognize that TEF has a P/B ratio of 0.72. 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. TEF's current P/B looks attractive when compared to its industry's average P/B of 2.11. Within the past 52 weeks, TEF's P/B has been as high as 1.31 and as low as 0.61, with a median of 0.70.
Investors could also keep in mind Telekom Austria , an Diversified Communication Services stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Telekom Austria also has a P/B ratio of 1.60 compared to its industry's price-to-book ratio of 2.11. Over the past year, its P/B ratio has been as high as 1.75, as low as 1.52, with a median of 1.60.
These are only a few of the key metrics included in Telefonica and Telekom Austria strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, TEF and TKAGY look like an impressive value stock at the moment.