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Is Eni (E) Stock Undervalued Right Now?

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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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company to watch right now is Eni (E - Free Report) . E is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 3.44. This compares to its industry's average Forward P/E of 6.30. E's Forward P/E has been as high as 10.25 and as low as 3.36, with a median of 5.63, all within the past year.

Investors should also note that E holds a PEG ratio of 0.33. 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. E's PEG compares to its industry's average PEG of 0.47. Over the last 12 months, E's PEG has been as high as 1.27 and as low as 0.33, with a median of 0.50.

Another valuation metric that we should highlight is E's P/B ratio of 0.74. 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 1.42. E's P/B has been as high as 1.13 and as low as 0.70, with a median of 1, over the past year.

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. E has a P/S ratio of 0.33. This compares to its industry's average P/S of 0.46.

Finally, our model also underscores that E has a P/CF ratio of 1.86. 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 stock's P/CF looks attractive against its industry's average P/CF of 4.94. Within the past 12 months, E's P/CF has been as high as 6.20 and as low as 1.76, with a median of 3.33.

Investors could also keep in mind YPF Sociedad Anonima (YPF - Free Report) , an Oil and Gas - Integrated - International stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.

Furthermore, YPF Sociedad Anonima holds a P/B ratio of 0.28 and its industry's price-to-book ratio is 1.42. YPF's P/B has been as high as 0.29, as low as 0.11, with a median of 0.20 over the past 12 months.

These are just a handful of the figures considered in Eni and YPF Sociedad Anonima'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 E and YPF is an impressive value stock right now.


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