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Should Value Investors Buy Transportadora De Gas Ord B (TGS) Stock?

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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 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 to watch right now is Transportadora De Gas Ord B (TGS - Free Report) . TGS is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.

Investors should also recognize that TGS has a P/B ratio of 1.07. The P/B ratio pits a stock's market value against 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 1.68. Within the past 52 weeks, TGS's P/B has been as high as 1.15 and as low as 0.46, with a median of 0.79.

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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. TGS has a P/S ratio of 1.97. This compares to its industry's average P/S of 2.01.

Finally, investors should note that TGS has a P/CF ratio of 5.19. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 9.62. TGS's P/CF has been as high as 5.59 and as low as 1.85, with a median of 3.61, all within the past year.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Transportadora De Gas Ord B is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, TGS feels like a great value stock at the moment.


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