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Is NGL Energy Partners LP (NGL) 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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 NGL Energy Partners LP (NGL - Free Report) . NGL is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.

Another valuation metric that we should highlight is NGL's P/B ratio of 0.62. 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 stock's P/B looks solid versus its industry's average P/B of 1.44. NGL's P/B has been as high as 1.05 and as low as 0.50, with a median of 0.74, over the past year.

Finally, our model also underscores that NGL has a P/CF ratio of 2.25. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. NGL's P/CF compares to its industry's average P/CF of 6.59. Over the past 52 weeks, NGL's P/CF has been as high as 19.71 and as low as 1.83, with a median of 8.88.

These are only a few of the key metrics included in NGL Energy Partners LP'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, NGL looks like an impressive value stock at the moment.


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