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Is Eni (E) a Great Value Stock 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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 value investors might notice is Eni (E - Free Report) . E is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock holds a P/E ratio of 4.97, while its industry has an average P/E of 7.47. Over the past year, E's Forward P/E has been as high as 14.07 and as low as 4.96, with a median of 9.09.

Investors will also notice that E has a PEG ratio of 0.48. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. E's PEG compares to its industry's average PEG of 0.67. Within the past year, E's PEG has been as high as 1.27 and as low as 0.43, with a median of 0.59.

We should also highlight that E has a P/B ratio of 1.02. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.38. Within the past 52 weeks, E's P/B has been as high as 1.13 and as low as 0.82, with a median of 0.99.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. E has a P/S ratio of 0.57. This compares to its industry's average P/S of 0.6.

Finally, investors should note that E has a P/CF ratio of 3.43. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 5.68. Over the past year, E's P/CF has been as high as 15.36 and as low as 3.18, with a median of 5.23.

If you're looking for another solid Oil and Gas - Integrated - International value stock, take a look at Vista Oil & Gas (VIST - Free Report) . VIST is a # 2 (Buy) stock with a Value score of A.

Additionally, Vista Oil & Gas has a P/B ratio of 1.39 while its industry's price-to-book ratio sits at 1.38. For VIST, this valuation metric has been as high as 1.50, as low as 0.44, with a median of 0.85 over the past year.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Eni and Vista Oil & Gas are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, E and VIST feels like a great value stock at the moment.


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