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Are Investors Undervaluing Plains Group (PAGP) Right Now?

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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, 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.

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 Plains Group (PAGP - Free Report) . PAGP is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 13.15, while its industry has an average P/E of 14.35. Over the past year, PAGP's Forward P/E has been as high as 29.02 and as low as 7.17, with a median of 10.41.

Finally, investors should note that PAGP has a P/CF ratio of 2.43. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 9.29. Over the past year, PAGP's P/CF has been as high as 3.50 and as low as 1.92, with a median of 2.63.

Another great Oil and Gas - Production and Pipelines stock you could consider is Transportadora De Gas Ord B (TGS - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.

Additionally, Transportadora De Gas Ord B has a P/B ratio of 0.80 while its industry's price-to-book ratio sits at 1.72. For TGS, this valuation metric has been as high as 0.85, as low as 0.46, with a median of 0.67 over the past year.

These are only a few of the key metrics included in Plains Group and Transportadora De Gas Ord B strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, PAGP and TGS look like an impressive value stock at the moment.

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Transportadora De Gas Sa Ord B (TGS) - free report >>

Plains Group Holdings, L.P. (PAGP) - free report >>

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