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Are Investors Undervaluing Northwest Natural (NWN) Right Now?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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.
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 to watch right now is Northwest Natural (NWN - Free Report) . NWN is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
We should also highlight that NWN has a P/B ratio of 1.10. The P/B ratio is used to compare a stock's market value with 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 1.21. Within the past 52 weeks, NWN's P/B has been as high as 1.24 and as low as 0.99, with a median of 1.10.
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. NWN has a P/S ratio of 1.29. This compares to its industry's average P/S of 1.67.
Finally, investors should note that NWN has a P/CF ratio of 7.02. 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. NWN's current P/CF looks attractive when compared to its industry's average P/CF of 8.10. NWN's P/CF has been as high as 7.35 and as low as 5.76, with a median of 6.29, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Northwest Natural is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, NWN feels like a great value stock at the moment.
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Are Investors Undervaluing Northwest Natural (NWN) Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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.
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 to watch right now is Northwest Natural (NWN - Free Report) . NWN is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
We should also highlight that NWN has a P/B ratio of 1.10. The P/B ratio is used to compare a stock's market value with 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 1.21. Within the past 52 weeks, NWN's P/B has been as high as 1.24 and as low as 0.99, with a median of 1.10.
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. NWN has a P/S ratio of 1.29. This compares to its industry's average P/S of 1.67.
Finally, investors should note that NWN has a P/CF ratio of 7.02. 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. NWN's current P/CF looks attractive when compared to its industry's average P/CF of 8.10. NWN's P/CF has been as high as 7.35 and as low as 5.76, with a median of 6.29, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Northwest Natural is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, NWN feels like a great value stock at the moment.