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Is Pampa Energia (PAM) Stock Undervalued 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, 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 Pampa Energia (PAM - Free Report) . PAM is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 7.40, which compares to its industry's average of 13.60. Over the last 12 months, PAM's Forward P/E has been as high as 8.39 and as low as 4.02, with a median of 5.90.
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. PAM has a P/S ratio of 0.82. This compares to its industry's average P/S of 1.92.
If you're looking for another solid Utility - Electric Power value stock, take a look at RWE AG (RWEOY - Free Report) . RWEOY is a # 2 (Buy) stock with a Value score of A.
RWE AG is trading at a forward earnings multiple of 9.25 at the moment, with a PEG ratio of 6.38. This compares to its industry's average P/E of 13.60 and average PEG ratio of 1.89.
RWEOY's Forward P/E has been as high as 20.53 and as low as 8.72, with a median of 17.68. During the same time period, its PEG ratio has been as high as 6.42, as low as 2.45, with a median of 3.90.
RWE AG also has a P/B ratio of 2.60 compared to its industry's price-to-book ratio of 2.25. Over the past year, its P/B ratio has been as high as 2.96, as low as 1.14, with a median of 2.25.
These are only a few of the key metrics included in Pampa Energia and RWE AG strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, PAM and RWEOY look like an impressive value stock at the moment.
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Is Pampa Energia (PAM) Stock Undervalued Right Now?
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, 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 Pampa Energia (PAM - Free Report) . PAM is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 7.40, which compares to its industry's average of 13.60. Over the last 12 months, PAM's Forward P/E has been as high as 8.39 and as low as 4.02, with a median of 5.90.
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. PAM has a P/S ratio of 0.82. This compares to its industry's average P/S of 1.92.
If you're looking for another solid Utility - Electric Power value stock, take a look at RWE AG (RWEOY - Free Report) . RWEOY is a # 2 (Buy) stock with a Value score of A.
RWE AG is trading at a forward earnings multiple of 9.25 at the moment, with a PEG ratio of 6.38. This compares to its industry's average P/E of 13.60 and average PEG ratio of 1.89.
RWEOY's Forward P/E has been as high as 20.53 and as low as 8.72, with a median of 17.68. During the same time period, its PEG ratio has been as high as 6.42, as low as 2.45, with a median of 3.90.
RWE AG also has a P/B ratio of 2.60 compared to its industry's price-to-book ratio of 2.25. Over the past year, its P/B ratio has been as high as 2.96, as low as 1.14, with a median of 2.25.
These are only a few of the key metrics included in Pampa Energia and RWE AG strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, PAM and RWEOY look like an impressive value stock at the moment.