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Should Value Investors Buy Brookfield Infrastructure Partners (BIP) Stock?

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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.

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 Brookfield Infrastructure Partners (BIP - Free Report) . BIP is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 12.98, while its industry has an average P/E of 14.10. Over the last 12 months, BIP's Forward P/E has been as high as 16.95 and as low as 12.58, with a median of 14.85.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. BIP has a P/S ratio of 1.39. This compares to its industry's average P/S of 2.16.

Finally, investors will want to recognize that BIP has a P/CF ratio of 10.35. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 14.65. Over the past year, BIP's P/CF has been as high as 12.45 and as low as 5.43, with a median of 6.32.

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

Centrais Eltricas Brasileiras is trading at a forward earnings multiple of 7.02 at the moment, with a PEG ratio of 2.30. This compares to its industry's average P/E of 14.10 and average PEG ratio of 2.41.


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