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Should Value Investors Buy NGL Energy Partners (NGL) 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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. 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 value investors might notice is NGL Energy Partners (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 1.52. 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. NGL's current P/B looks attractive when compared to its industry's average P/B of 4.51. Over the past year, NGL's P/B has been as high as 1.58 and as low as 0.84, with a median of 1.20.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. NGL has a P/S ratio of 0.11. This compares to its industry's average P/S of 0.3.
Finally, investors should note that NGL has a P/CF ratio of 2.24. 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. NGL's current P/CF looks attractive when compared to its industry's average P/CF of 8.53. NGL's P/CF has been as high as 2.32 and as low as 1.03, with a median of 1.53, all within the past year.
These are only a few of the key metrics included in NGL Energy Partners'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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Should Value Investors Buy NGL Energy Partners (NGL) Stock?
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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. 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 value investors might notice is NGL Energy Partners (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 1.52. 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. NGL's current P/B looks attractive when compared to its industry's average P/B of 4.51. Over the past year, NGL's P/B has been as high as 1.58 and as low as 0.84, with a median of 1.20.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. NGL has a P/S ratio of 0.11. This compares to its industry's average P/S of 0.3.
Finally, investors should note that NGL has a P/CF ratio of 2.24. 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. NGL's current P/CF looks attractive when compared to its industry's average P/CF of 8.53. NGL's P/CF has been as high as 2.32 and as low as 1.03, with a median of 1.53, all within the past year.
These are only a few of the key metrics included in NGL Energy Partners'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.