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Is GDF Suez (ENGIY) Stock Undervalued 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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company value investors might notice is GDF Suez (ENGIY - Free Report) . ENGIY is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 5.33, which compares to its industry's average of 14.36. Over the past year, ENGIY's Forward P/E has been as high as 7.10 and as low as 5.33, with a median of 6.03.

Investors should also note that ENGIY holds a PEG ratio of 1.44. 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. ENGIY's industry has an average PEG of 1.99 right now. ENGIY's PEG has been as high as 1.64 and as low as 0.84, with a median of 1.06, all within the past year.

If you're looking for another solid Utility - Electric Power value stock, take a look at RWE AG (RWEOY - Free Report) . RWEOY is a # 2 (Buy) stock with a Value score of A.

Shares of RWE AG currently holds a Forward P/E ratio of 11.09, and its PEG ratio is 2.49. In comparison, its industry sports average P/E and PEG ratios of 14.36 and 1.99.

Over the past year, RWEOY's P/E has been as high as 20.53, as low as 11.09, with a median of 17.85; its PEG ratio has been as high as 4.53, as low as 2.49, with a median of 1.06 during the same time period.

Additionally, RWE AG has a P/B ratio of 2.49 while its industry's price-to-book ratio sits at 2.18. For RWEOY, this valuation metric has been as high as 2.96, as low as 0.88, with a median of 1.33 over the past year.

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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