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Are These Utilities Stocks a Great Value Stocks 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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is Deutsche Telekom (DTEGY - Free Report) . DTEGY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 12.03. This compares to its industry's average Forward P/E of 24.26. Over the past 52 weeks, DTEGY's Forward P/E has been as high as 17.04 and as low as 11.60, with a median of 14.90.
Investors should also note that DTEGY holds a PEG ratio of 1.21. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. DTEGY's PEG compares to its industry's average PEG of 1.75. DTEGY's PEG has been as high as 4.54 and as low as 1.17, with a median of 1.43, all within the past year.
We should also highlight that DTEGY has a P/B ratio of 0.96. 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 2.09. Over the past 12 months, DTEGY's P/B has been as high as 1.17 and as low as 0.90, with a median of 1.04.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. DTEGY has a P/S ratio of 0.7. This compares to its industry's average P/S of 1.94.
Another great Diversified Communication Services stock you could consider is Telekom Austria , which is a # 2 (Buy) stock with a Value Score of A.
Telekom Austria also has a P/B ratio of 1.56 compared to its industry's price-to-book ratio of 2.09. Over the past year, its P/B ratio has been as high as 1.75, as low as 1.52, with a median of 1.60.
Value investors will likely look at more than just these metrics, but the above data helps show that Deutsche Telekom and Telekom Austria are likely undervalued currently. And when considering the strength of its earnings outlook, DTEGY and TKAGY sticks out as one of the market's strongest value stocks.
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Are These Utilities Stocks a Great Value Stocks Right Now?
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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is Deutsche Telekom (DTEGY - Free Report) . DTEGY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 12.03. This compares to its industry's average Forward P/E of 24.26. Over the past 52 weeks, DTEGY's Forward P/E has been as high as 17.04 and as low as 11.60, with a median of 14.90.
Investors should also note that DTEGY holds a PEG ratio of 1.21. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. DTEGY's PEG compares to its industry's average PEG of 1.75. DTEGY's PEG has been as high as 4.54 and as low as 1.17, with a median of 1.43, all within the past year.
We should also highlight that DTEGY has a P/B ratio of 0.96. 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 2.09. Over the past 12 months, DTEGY's P/B has been as high as 1.17 and as low as 0.90, with a median of 1.04.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. DTEGY has a P/S ratio of 0.7. This compares to its industry's average P/S of 1.94.
Another great Diversified Communication Services stock you could consider is Telekom Austria , which is a # 2 (Buy) stock with a Value Score of A.
Telekom Austria also has a P/B ratio of 1.56 compared to its industry's price-to-book ratio of 2.09. Over the past year, its P/B ratio has been as high as 1.75, as low as 1.52, with a median of 1.60.
Value investors will likely look at more than just these metrics, but the above data helps show that Deutsche Telekom and Telekom Austria are likely undervalued currently. And when considering the strength of its earnings outlook, DTEGY and TKAGY sticks out as one of the market's strongest value stocks.