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Are Investors Undervaluing GDF Suez (ENGIY) Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

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.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company to watch right now is GDF Suez (ENGIY - Free Report) . ENGIY is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 5.84. This compares to its industry's average Forward P/E of 15.58. Over the past 52 weeks, ENGIY's Forward P/E has been as high as 7.10 and as low as 5.54, with a median of 6.21.

Investors will also notice that ENGIY has a PEG ratio of 1.58. 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. ENGIY's PEG compares to its industry's average PEG of 2.18. Over the past 52 weeks, ENGIY's PEG has been as high as 1.64 and as low as 0.84, with a median of 0.99.

Another great Utility - Electric Power stock you could consider is RWE AG (RWEOY - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.

RWE AG is currently trading with a Forward P/E ratio of 12.64 while its PEG ratio sits at 2.83. Both of the company's metrics compare favorably to its industry's average P/E of 15.58 and average PEG ratio of 2.18.

Over the last 12 months, RWEOY's P/E has been as high as 20.53, as low as 12.48, with a median of 18.03, and its PEG ratio has been as high as 4.53, as low as 2.80, with a median of 3.99.

RWE AG also has a P/B ratio of 2.29 compared to its industry's price-to-book ratio of 2.55. Over the past year, its P/B ratio has been as high as 2.48, as low as 0.88, with a median of 1.28.

These are only a few of the key metrics included in GDF Suez and RWE AG strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, ENGIY and RWEOY look like an impressive value stock at the moment.


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