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Is Energy Transfer (ET) a Great Value Stock Right Now?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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 Energy Transfer (ET - Free Report) . ET 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 8.53. This compares to its industry's average Forward P/E of 10.68. ET's Forward P/E has been as high as 11.51 and as low as 4.74, with a median of 7.83, all within the past year.
Investors should also recognize that ET has a P/B ratio of 1.02. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.87. Over the past 12 months, ET's P/B has been as high as 1.11 and as low as 0.74, with a median of 0.91.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. ET has a P/S ratio of 0.49. This compares to its industry's average P/S of 1.16.
Finally, our model also underscores that ET has a P/CF ratio of 5.05. 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. ET's current P/CF looks attractive when compared to its industry's average P/CF of 8.33. Within the past 12 months, ET's P/CF has been as high as 5.49 and as low as 2.53, with a median of 3.29.
Investors could also keep in mind Plains All American Pipeline (PAA - Free Report) , an Oil and Gas - Production Pipeline - MLB stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Plains All American Pipeline sports a P/B ratio of 0.74 as well; this compares to its industry's price-to-book ratio of 1.87. In the past 52 weeks, PAA's P/B has been as high as 1.15, as low as 0.63, with a median of 0.76.
Value investors will likely look at more than just these metrics, but the above data helps show that Energy Transfer and Plains All American Pipeline are likely undervalued currently. And when considering the strength of its earnings outlook, ET and PAA sticks out as one of the market's strongest value stocks.
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Is Energy Transfer (ET) a Great Value Stock Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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 Energy Transfer (ET - Free Report) . ET 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 8.53. This compares to its industry's average Forward P/E of 10.68. ET's Forward P/E has been as high as 11.51 and as low as 4.74, with a median of 7.83, all within the past year.
Investors should also recognize that ET has a P/B ratio of 1.02. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.87. Over the past 12 months, ET's P/B has been as high as 1.11 and as low as 0.74, with a median of 0.91.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. ET has a P/S ratio of 0.49. This compares to its industry's average P/S of 1.16.
Finally, our model also underscores that ET has a P/CF ratio of 5.05. 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. ET's current P/CF looks attractive when compared to its industry's average P/CF of 8.33. Within the past 12 months, ET's P/CF has been as high as 5.49 and as low as 2.53, with a median of 3.29.
Investors could also keep in mind Plains All American Pipeline (PAA - Free Report) , an Oil and Gas - Production Pipeline - MLB stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Plains All American Pipeline sports a P/B ratio of 0.74 as well; this compares to its industry's price-to-book ratio of 1.87. In the past 52 weeks, PAA's P/B has been as high as 1.15, as low as 0.63, with a median of 0.76.
Value investors will likely look at more than just these metrics, but the above data helps show that Energy Transfer and Plains All American Pipeline are likely undervalued currently. And when considering the strength of its earnings outlook, ET and PAA sticks out as one of the market's strongest value stocks.