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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.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 to watch right now is NRG Energy (NRG - Free Report) . NRG is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 6.83, which compares to its industry's average of 14.56. Over the past year, NRG's Forward P/E has been as high as 13.06 and as low as 2.87, with a median of 8.56.
Investors should also recognize that NRG has a P/B ratio of 1.55. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2.08. Over the past 12 months, NRG's P/B has been as high as 2.78 and as low as 1.39, with a median of 1.88.
TransAlta (TAC - Free Report) may be another strong Utility - Electric Power stock to add to your shortlist. TAC is a # 1 (Strong Buy) stock with a Value grade of A.
Furthermore, TransAlta holds a P/B ratio of 2.20 and its industry's price-to-book ratio is 2.08. TAC's P/B has been as high as 2.65, as low as 1.87, with a median of 2.21 over the past 12 months.
These are only a few of the key metrics included in NRG Energy and TransAlta strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, NRG and TAC look like an impressive value stock at the moment.
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Is NRG Energy (NRG) Stock Undervalued Right Now?
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.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 to watch right now is NRG Energy (NRG - Free Report) . NRG is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 6.83, which compares to its industry's average of 14.56. Over the past year, NRG's Forward P/E has been as high as 13.06 and as low as 2.87, with a median of 8.56.
Investors should also recognize that NRG has a P/B ratio of 1.55. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2.08. Over the past 12 months, NRG's P/B has been as high as 2.78 and as low as 1.39, with a median of 1.88.
TransAlta (TAC - Free Report) may be another strong Utility - Electric Power stock to add to your shortlist. TAC is a # 1 (Strong Buy) stock with a Value grade of A.
Furthermore, TransAlta holds a P/B ratio of 2.20 and its industry's price-to-book ratio is 2.08. TAC's P/B has been as high as 2.65, as low as 1.87, with a median of 2.21 over the past 12 months.
These are only a few of the key metrics included in NRG Energy and TransAlta strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, NRG and TAC look like an impressive value stock at the moment.