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Is Energy Transfer (ET) Stock Undervalued 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.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 stock to keep an eye on is Energy Transfer (ET - Free Report) . ET is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 8.50. This compares to its industry's average Forward P/E of 9.96. Over the last 12 months, ET's Forward P/E has been as high as 11.51 and as low as 4.74, with a median of 8.52.
We should also highlight that ET has a P/B ratio of 1.03. The P/B is a method of comparing a stock's market value to 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 1.70. Over the past year, ET's P/B has been as high as 1.11 and as low as 0.74, with a median of 0.96.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. ET has a P/S ratio of 0.43. This compares to its industry's average P/S of 1.04.
Finally, investors will want to recognize that ET has a P/CF ratio of 4.62. 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. ET's P/CF compares to its industry's average P/CF of 7.32. 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 3.95.
If you're looking for another solid Oil and Gas - Production Pipeline - MLB value stock, take a look at Plains All American Pipeline (PAA - Free Report) . PAA is a # 1 (Strong Buy) stock with a Value score of A.
Plains All American Pipeline sports a P/B ratio of 0.75 as well; this compares to its industry's price-to-book ratio of 1.70. 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 0.75.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Energy Transfer and Plains All American Pipeline are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ET and PAA feels like a great value stock at the moment.
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Is Energy Transfer (ET) Stock Undervalued 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.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 stock to keep an eye on is Energy Transfer (ET - Free Report) . ET is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 8.50. This compares to its industry's average Forward P/E of 9.96. Over the last 12 months, ET's Forward P/E has been as high as 11.51 and as low as 4.74, with a median of 8.52.
We should also highlight that ET has a P/B ratio of 1.03. The P/B is a method of comparing a stock's market value to 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 1.70. Over the past year, ET's P/B has been as high as 1.11 and as low as 0.74, with a median of 0.96.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. ET has a P/S ratio of 0.43. This compares to its industry's average P/S of 1.04.
Finally, investors will want to recognize that ET has a P/CF ratio of 4.62. 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. ET's P/CF compares to its industry's average P/CF of 7.32. 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 3.95.
If you're looking for another solid Oil and Gas - Production Pipeline - MLB value stock, take a look at Plains All American Pipeline (PAA - Free Report) . PAA is a # 1 (Strong Buy) stock with a Value score of A.
Plains All American Pipeline sports a P/B ratio of 0.75 as well; this compares to its industry's price-to-book ratio of 1.70. 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 0.75.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Energy Transfer and Plains All American Pipeline are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ET and PAA feels like a great value stock at the moment.