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Is Pampa Energia (PAM) a Great Value Stock Right Now?

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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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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.

Pampa Energia (PAM - Free Report) is a stock many investors are watching right now. PAM is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 5.64 right now. For comparison, its industry sports an average P/E of 14.69. PAM's Forward P/E has been as high as 8.39 and as low as 4.02, with a median of 5.87, all within the past year.

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. PAM has a P/S ratio of 0.78. This compares to its industry's average P/S of 2.14.

If you're looking for another solid Utility - Electric Power value stock, take a look at Vistra (VST - Free Report) . VST is a # 2 (Buy) stock with a Value score of A.

Vistra is currently trading with a Forward P/E ratio of 8.73 while its PEG ratio sits at 0.14. Both of the company's metrics compare favorably to its industry's average P/E of 14.69 and average PEG ratio of 1.98.

VST's price-to-earnings ratio has been as high as 71.25 and as low as 8.73, with a median of 11.27, while its PEG ratio has been as high as 3.35 and as low as 0.14, with a median of 0.57, all within the past year.

Furthermore, Vistra holds a P/B ratio of 1.76 and its industry's price-to-book ratio is 2.08. VST's P/B has been as high as 1.87, as low as 1.26, with a median of 1.57 over the past 12 months.

Value investors will likely look at more than just these metrics, but the above data helps show that Pampa Energia and Vistra are likely undervalued currently. And when considering the strength of its earnings outlook, PAM and VST sticks out as one of the market's strongest value stocks.


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Pampa Energia S.A. (PAM) - free report >>

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