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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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
UGI (UGI - Free Report) is a stock many investors are watching right now. UGI is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 7.85, which compares to its industry's average of 15.03. Over the last 12 months, UGI's Forward P/E has been as high as 8.76 and as low as 6.25, with a median of 7.93.
UGI is also sporting a PEG ratio of 1.04. 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. UGI's PEG compares to its industry's average PEG of 2.33. Over the past 52 weeks, UGI's PEG has been as high as 1.10 and as low as 0.78, with a median of 0.99.
Another valuation metric that we should highlight is UGI's P/B ratio of 1.10. 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. UGI's current P/B looks attractive when compared to its industry's average P/B of 1.22. Over the past year, UGI's P/B has been as high as 1.26 and as low as 0.99, with a median of 1.10.
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. UGI has a P/S ratio of 0.73. This compares to its industry's average P/S of 1.75.
Finally, our model also underscores that UGI has a P/CF ratio of 4.22. 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. UGI's P/CF compares to its industry's average P/CF of 7.98. Within the past 12 months, UGI's P/CF has been as high as 7.51 and as low as -23.22, with a median of 4.27.
These are only a few of the key metrics included in UGI'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, UGI looks like an impressive value stock at the moment.
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Are Investors Undervaluing UGI (UGI) 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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
UGI (UGI - Free Report) is a stock many investors are watching right now. UGI is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 7.85, which compares to its industry's average of 15.03. Over the last 12 months, UGI's Forward P/E has been as high as 8.76 and as low as 6.25, with a median of 7.93.
UGI is also sporting a PEG ratio of 1.04. 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. UGI's PEG compares to its industry's average PEG of 2.33. Over the past 52 weeks, UGI's PEG has been as high as 1.10 and as low as 0.78, with a median of 0.99.
Another valuation metric that we should highlight is UGI's P/B ratio of 1.10. 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. UGI's current P/B looks attractive when compared to its industry's average P/B of 1.22. Over the past year, UGI's P/B has been as high as 1.26 and as low as 0.99, with a median of 1.10.
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. UGI has a P/S ratio of 0.73. This compares to its industry's average P/S of 1.75.
Finally, our model also underscores that UGI has a P/CF ratio of 4.22. 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. UGI's P/CF compares to its industry's average P/CF of 7.98. Within the past 12 months, UGI's P/CF has been as high as 7.51 and as low as -23.22, with a median of 4.27.
These are only a few of the key metrics included in UGI'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, UGI looks like an impressive value stock at the moment.