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Are Investors Undervaluing NGL Energy Partners LP (NGL) Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 NGL Energy Partners LP (NGL - Free Report) . NGL is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value.
We should also highlight that NGL has a P/B ratio of 0.81. Investors use the P/B ratio to look at a stock's market value versus 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 1.57. NGL's P/B has been as high as 0.86 and as low as 0.50, with a median of 0.73, over the past year.
Finally, we should also recognize that NGL has a P/CF ratio of 2.71. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 7.40. NGL's P/CF has been as high as 19.71 and as low as 1.83, with a median of 7.91, all within the past year.
These are just a handful of the figures considered in NGL Energy Partners LP'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 NGL is an impressive value stock right now.
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Are Investors Undervaluing NGL Energy Partners LP (NGL) Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 NGL Energy Partners LP (NGL - Free Report) . NGL is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value.
We should also highlight that NGL has a P/B ratio of 0.81. Investors use the P/B ratio to look at a stock's market value versus 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 1.57. NGL's P/B has been as high as 0.86 and as low as 0.50, with a median of 0.73, over the past year.
Finally, we should also recognize that NGL has a P/CF ratio of 2.71. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 7.40. NGL's P/CF has been as high as 19.71 and as low as 1.83, with a median of 7.91, all within the past year.
These are just a handful of the figures considered in NGL Energy Partners LP'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 NGL is an impressive value stock right now.