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Should Value Investors Buy Centrais Eltricas Brasileiras (EBR) Stock?
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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, 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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 Centrais Eltricas Brasileiras (EBR - Free Report) . EBR is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 9.72 right now. For comparison, its industry sports an average P/E of 13.86. Over the past 52 weeks, EBR's Forward P/E has been as high as 20.56 and as low as 6.81, with a median of 9.77.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. EBR has a P/S ratio of 1.8. This compares to its industry's average P/S of 1.96.
Finally, our model also underscores that EBR has a P/CF ratio of 7.65. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 12.02. Within the past 12 months, EBR's P/CF has been as high as 8.32 and as low as 4.54, with a median of 6.18.
If you're looking for another solid Utility - Electric Power value stock, take a look at RWE AG (RWEOY - Free Report) . RWEOY is a # 1 (Strong Buy) stock with a Value score of A.
Shares of RWE AG currently holds a Forward P/E ratio of 11.33, and its PEG ratio is 2.54. In comparison, its industry sports average P/E and PEG ratios of 13.86 and 1.93.
Over the last 12 months, RWEOY's P/E has been as high as 20.53, as low as 10.92, with a median of 17.80, and its PEG ratio has been as high as 4.53, as low as 2.45, with a median of 3.78.
Additionally, RWE AG has a P/B ratio of 2.55 while its industry's price-to-book ratio sits at 2.11. For RWEOY, this valuation metric has been as high as 2.96, as low as 1.09, with a median of 2.07 over the past year.
These are just a handful of the figures considered in Centrais Eltricas Brasileiras and RWE AG's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that EBR and RWEOY is an impressive value stock right now.
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Should Value Investors Buy Centrais Eltricas Brasileiras (EBR) Stock?
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, 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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 Centrais Eltricas Brasileiras (EBR - Free Report) . EBR is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 9.72 right now. For comparison, its industry sports an average P/E of 13.86. Over the past 52 weeks, EBR's Forward P/E has been as high as 20.56 and as low as 6.81, with a median of 9.77.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. EBR has a P/S ratio of 1.8. This compares to its industry's average P/S of 1.96.
Finally, our model also underscores that EBR has a P/CF ratio of 7.65. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 12.02. Within the past 12 months, EBR's P/CF has been as high as 8.32 and as low as 4.54, with a median of 6.18.
If you're looking for another solid Utility - Electric Power value stock, take a look at RWE AG (RWEOY - Free Report) . RWEOY is a # 1 (Strong Buy) stock with a Value score of A.
Shares of RWE AG currently holds a Forward P/E ratio of 11.33, and its PEG ratio is 2.54. In comparison, its industry sports average P/E and PEG ratios of 13.86 and 1.93.
Over the last 12 months, RWEOY's P/E has been as high as 20.53, as low as 10.92, with a median of 17.80, and its PEG ratio has been as high as 4.53, as low as 2.45, with a median of 3.78.
Additionally, RWE AG has a P/B ratio of 2.55 while its industry's price-to-book ratio sits at 2.11. For RWEOY, this valuation metric has been as high as 2.96, as low as 1.09, with a median of 2.07 over the past year.
These are just a handful of the figures considered in Centrais Eltricas Brasileiras and RWE AG's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that EBR and RWEOY is an impressive value stock right now.