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Are Investors Undervaluing Energy Transfer (ET) 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.
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 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 Energy Transfer (ET - Free Report) . ET is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 10.50. This compares to its industry's average Forward P/E of 12.12. Over the past 52 weeks, ET's Forward P/E has been as high as 13.47 and as low as 9.68, with a median of 10.56.
We also note that ET holds a PEG ratio of 0.42. 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. ET's PEG compares to its industry's average PEG of 0.71. Within the past year, ET's PEG has been as high as 0.42 and as low as 0.39, with a median of 0.41.
We should also highlight that ET has a P/B ratio of 1.45. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. ET's current P/B looks attractive when compared to its industry's average P/B of 2.13. Within the past 52 weeks, ET's P/B has been as high as 1.45 and as low as 1.13, with a median of 1.25.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. ET has a P/S ratio of 0.68. This compares to its industry's average P/S of 1.04.
Finally, investors should note that ET has a P/CF ratio of 6.83. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 9.26. Over the past 52 weeks, ET's P/CF has been as high as 6.83 and as low as 4.96, with a median of 5.85.
Plains All American Pipeline (PAA - Free Report) may be another strong Oil and Gas - Production Pipeline - MLB stock to add to your shortlist. PAA is a # 2 (Buy) stock with a Value grade of A.
Additionally, Plains All American Pipeline has a P/B ratio of 1.16 while its industry's price-to-book ratio sits at 2.13. For PAA, this valuation metric has been as high as 1.17, as low as 0.89, with a median of 0.97 over the past year.
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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Are Investors Undervaluing Energy Transfer (ET) 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.
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 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 Energy Transfer (ET - Free Report) . ET is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 10.50. This compares to its industry's average Forward P/E of 12.12. Over the past 52 weeks, ET's Forward P/E has been as high as 13.47 and as low as 9.68, with a median of 10.56.
We also note that ET holds a PEG ratio of 0.42. 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. ET's PEG compares to its industry's average PEG of 0.71. Within the past year, ET's PEG has been as high as 0.42 and as low as 0.39, with a median of 0.41.
We should also highlight that ET has a P/B ratio of 1.45. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. ET's current P/B looks attractive when compared to its industry's average P/B of 2.13. Within the past 52 weeks, ET's P/B has been as high as 1.45 and as low as 1.13, with a median of 1.25.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. ET has a P/S ratio of 0.68. This compares to its industry's average P/S of 1.04.
Finally, investors should note that ET has a P/CF ratio of 6.83. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 9.26. Over the past 52 weeks, ET's P/CF has been as high as 6.83 and as low as 4.96, with a median of 5.85.
Plains All American Pipeline (PAA - Free Report) may be another strong Oil and Gas - Production Pipeline - MLB stock to add to your shortlist. PAA is a # 2 (Buy) stock with a Value grade of A.
Additionally, Plains All American Pipeline has a P/B ratio of 1.16 while its industry's price-to-book ratio sits at 2.13. For PAA, this valuation metric has been as high as 1.17, as low as 0.89, with a median of 0.97 over the past year.
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.