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Is National Fuel Gas Company (NFG) a Great Value Stock Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 stock to keep an eye on is National Fuel Gas Company (NFG - Free Report) . NFG is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 9.85, which compares to its industry's average of 14.63. Over the past 52 weeks, NFG's Forward P/E has been as high as 10.86 and as low as 8.59, with a median of 9.55.

Investors will also notice that NFG has a PEG ratio of 1.56. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. NFG's PEG compares to its industry's average PEG of 2.43. Within the past year, NFG's PEG has been as high as 1.59 and as low as 0.85, with a median of 1.11.

Finally, our model also underscores that NFG has a P/CF ratio of 7.10. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 7.77. Over the past 52 weeks, NFG's P/CF has been as high as 7.10 and as low as 4.86, with a median of 5.42.

These are just a handful of the figures considered in National Fuel Gas Company'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 NFG is an impressive value stock right now.


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