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Is Peabody Energy (BTU) 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.
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 company to watch right now is Peabody Energy (BTU - Free Report) . BTU is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 3. This compares to its industry's average Forward P/E of 3.32. Over the past year, BTU's Forward P/E has been as high as 25.85 and as low as -60.06, with a median of 3.64.
Another valuation metric that we should highlight is BTU's P/B ratio of 1.21. 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. This company's current P/B looks solid when compared to its industry's average P/B of 2.13. BTU's P/B has been as high as 2.47 and as low as 0.70, with a median of 1.41, over the past year.
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. BTU has a P/S ratio of 0.7. This compares to its industry's average P/S of 0.95.
Finally, we should also recognize that BTU has a P/CF ratio of 2.90. 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. BTU's P/CF compares to its industry's average P/CF of 4.34. Within the past 12 months, BTU's P/CF has been as high as 110.47 and as low as -242.20, with a median of 4.60.
These are just a handful of the figures considered in Peabody Energy's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that BTU is an impressive value stock right now.
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Is Peabody Energy (BTU) a Great Value Stock Right Now?
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.
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 company to watch right now is Peabody Energy (BTU - Free Report) . BTU is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 3. This compares to its industry's average Forward P/E of 3.32. Over the past year, BTU's Forward P/E has been as high as 25.85 and as low as -60.06, with a median of 3.64.
Another valuation metric that we should highlight is BTU's P/B ratio of 1.21. 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. This company's current P/B looks solid when compared to its industry's average P/B of 2.13. BTU's P/B has been as high as 2.47 and as low as 0.70, with a median of 1.41, over the past year.
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. BTU has a P/S ratio of 0.7. This compares to its industry's average P/S of 0.95.
Finally, we should also recognize that BTU has a P/CF ratio of 2.90. 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. BTU's P/CF compares to its industry's average P/CF of 4.34. Within the past 12 months, BTU's P/CF has been as high as 110.47 and as low as -242.20, with a median of 4.60.
These are just a handful of the figures considered in Peabody Energy's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that BTU is an impressive value stock right now.