Back to top

Image: Bigstock

Are Investors Undervaluing Crestwood Equity Partners LP (CEQP) Right Now?

Read MoreHide Full Article

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.

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.

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 Crestwood Equity Partners LP (CEQP - Free Report) . CEQP is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.

Another notable valuation metric for CEQP is its P/B ratio of 0.67. 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 0.97. Over the past year, CEQP's P/B has been as high as 1.96 and as low as 0.13, with a median of 1.27.

Finally, investors should note that CEQP has a P/CF ratio of 2.39. 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. CEQP's P/CF compares to its industry's average P/CF of 6.36. Over the past 52 weeks, CEQP's P/CF has been as high as 7.39 and as low as 0.50, with a median of 4.69.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Crestwood Equity Partners LP is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CEQP feels like a great value stock at the moment.

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

Crestwood Equity Partners LP (CEQP) - free report >>

Published in