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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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is Eni (E - Free Report) . E is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 7.34, while its industry has an average P/E of 9.70. E's Forward P/E has been as high as 8.05 and as low as 6.10, with a median of 6.95, all within the past year.
Investors will also notice that E has a PEG ratio of 1.22. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. E's PEG compares to its industry's average PEG of 1.48. Over the past 52 weeks, E's PEG has been as high as 2.03 and as low as 1.05, with a median of 1.43.
Another valuation metric that we should highlight is E's P/B ratio of 0.89. 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 stock's P/B looks attractive against its industry's average P/B of 1.29. Over the past 12 months, E's P/B has been as high as 0.99 and as low as 0.82, with a median of 0.92.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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. E has a P/S ratio of 0.52. This compares to its industry's average P/S of 0.69.
Finally, investors will want to recognize that E has a P/CF ratio of 4.07. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. E's P/CF compares to its industry's average P/CF of 5.50. Over the past 52 weeks, E's P/CF has been as high as 4.54 and as low as 3, with a median of 3.97.
These are only a few of the key metrics included in Eni's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, E looks like an impressive value stock at the moment.
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Are Investors Undervaluing Eni (E) 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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is Eni (E - Free Report) . E is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 7.34, while its industry has an average P/E of 9.70. E's Forward P/E has been as high as 8.05 and as low as 6.10, with a median of 6.95, all within the past year.
Investors will also notice that E has a PEG ratio of 1.22. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. E's PEG compares to its industry's average PEG of 1.48. Over the past 52 weeks, E's PEG has been as high as 2.03 and as low as 1.05, with a median of 1.43.
Another valuation metric that we should highlight is E's P/B ratio of 0.89. 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 stock's P/B looks attractive against its industry's average P/B of 1.29. Over the past 12 months, E's P/B has been as high as 0.99 and as low as 0.82, with a median of 0.92.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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. E has a P/S ratio of 0.52. This compares to its industry's average P/S of 0.69.
Finally, investors will want to recognize that E has a P/CF ratio of 4.07. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. E's P/CF compares to its industry's average P/CF of 5.50. Over the past 52 weeks, E's P/CF has been as high as 4.54 and as low as 3, with a median of 3.97.
These are only a few of the key metrics included in Eni's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, E looks like an impressive value stock at the moment.