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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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 to watch right now is NRG Yield (CWEN - Free Report) . CWEN is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 9.34, which compares to its industry's average of 11.25. Over the last 12 months, CWEN's Forward P/E has been as high as 23.93 and as low as 9.34, with a median of 18.68.
We also note that CWEN holds a PEG ratio of 0.37. 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. CWEN's industry currently sports an average PEG of 0.53. Over the last 12 months, CWEN's PEG has been as high as 0.96 and as low as 0.37, with a median of 0.66.
Finally, our model also underscores that CWEN has a P/CF ratio of 5.08. 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. CWEN's current P/CF looks attractive when compared to its industry's average P/CF of 5.20. Within the past 12 months, CWEN's P/CF has been as high as 5.39 and as low as 3.61, with a median of 4.48.
These figures are just a handful of the metrics value investors tend to look at, but they help show that NRG Yield is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CWEN feels like a great value stock at the moment.
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Is NRG Yield (CWEN) Stock Undervalued Right Now?
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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 to watch right now is NRG Yield (CWEN - Free Report) . CWEN is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 9.34, which compares to its industry's average of 11.25. Over the last 12 months, CWEN's Forward P/E has been as high as 23.93 and as low as 9.34, with a median of 18.68.
We also note that CWEN holds a PEG ratio of 0.37. 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. CWEN's industry currently sports an average PEG of 0.53. Over the last 12 months, CWEN's PEG has been as high as 0.96 and as low as 0.37, with a median of 0.66.
Finally, our model also underscores that CWEN has a P/CF ratio of 5.08. 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. CWEN's current P/CF looks attractive when compared to its industry's average P/CF of 5.20. Within the past 12 months, CWEN's P/CF has been as high as 5.39 and as low as 3.61, with a median of 4.48.
These figures are just a handful of the metrics value investors tend to look at, but they help show that NRG Yield is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CWEN feels like a great value stock at the moment.