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Are Investors Undervaluing Eni (E) Right Now?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

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

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 value investors might notice is Eni (E - Free Report) . E is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 3.65, while its industry has an average P/E of 6.84. Over the past year, E's Forward P/E has been as high as 9.54 and as low as 3.12, with a median of 5.01.

Investors should also note that E holds a PEG ratio of 0.35. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. E's industry currently sports an average PEG of 0.50. Over the past 52 weeks, E's PEG has been as high as 1.27 and as low as 0.30, with a median of 0.49.

Another valuation metric that we should highlight is E's P/B ratio of 0.78. Investors use the P/B ratio to look at a stock's market value versus 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 1.50. Over the past year, E's P/B has been as high as 1.13 and as low as 0.67, with a median of 0.99.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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 0.36. This compares to its industry's average P/S of 0.52.

Finally, investors should note that E has a P/CF ratio of 1.96. 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. E's P/CF compares to its industry's average P/CF of 5.38. E's P/CF has been as high as 5.69 and as low as 1.68, with a median of 2.94, all within the past year.

If you're looking for another solid Oil and Gas - Integrated - International value stock, take a look at YPF Sociedad Anonima (YPF - Free Report) . YPF is a # 2 (Buy) stock with a Value score of A.

YPF Sociedad Anonima also has a P/B ratio of 0.28 compared to its industry's price-to-book ratio of 1.50. Over the past year, its P/B ratio has been as high as 0.29, as low as 0.11, with a median of 0.20.

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


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