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Is DCP Midstream Partners (DCP) 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.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is DCP Midstream Partners . DCP is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 8.66 right now. For comparison, its industry sports an average P/E of 15.16. Over the past 52 weeks, DCP's Forward P/E has been as high as 30.57 and as low as 6.94, with a median of 8.66.
Investors should also recognize that DCP has a P/B ratio of 1.46. 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. DCP's current P/B looks attractive when compared to its industry's average P/B of 1.81. Over the past year, DCP's P/B has been as high as 1.61 and as low as 1.02, with a median of 1.34.
Finally, investors should note that DCP has a P/CF ratio of 5.59. 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. DCP's current P/CF looks attractive when compared to its industry's average P/CF of 9.77. Over the past year, DCP's P/CF has been as high as 12.20 and as low as 4.93, with a median of 8.38.
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.
Transportadora De Gas Ord B sports a P/B ratio of 0.87 as well; this compares to its industry's price-to-book ratio of 1.81. In the past 52 weeks, TGS's P/B has been as high as 0.93, as low as 0.46, with a median of 0.67.
These are just a handful of the figures considered in DCP Midstream Partners and Transportadora De Gas Ord B'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 DCP and TGS is an impressive value stock right now.
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Is DCP Midstream Partners (DCP) 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.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is DCP Midstream Partners . DCP is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 8.66 right now. For comparison, its industry sports an average P/E of 15.16. Over the past 52 weeks, DCP's Forward P/E has been as high as 30.57 and as low as 6.94, with a median of 8.66.
Investors should also recognize that DCP has a P/B ratio of 1.46. 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. DCP's current P/B looks attractive when compared to its industry's average P/B of 1.81. Over the past year, DCP's P/B has been as high as 1.61 and as low as 1.02, with a median of 1.34.
Finally, investors should note that DCP has a P/CF ratio of 5.59. 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. DCP's current P/CF looks attractive when compared to its industry's average P/CF of 9.77. Over the past year, DCP's P/CF has been as high as 12.20 and as low as 4.93, with a median of 8.38.
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.
Transportadora De Gas Ord B sports a P/B ratio of 0.87 as well; this compares to its industry's price-to-book ratio of 1.81. In the past 52 weeks, TGS's P/B has been as high as 0.93, as low as 0.46, with a median of 0.67.
These are just a handful of the figures considered in DCP Midstream Partners and Transportadora De Gas Ord B'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 DCP and TGS is an impressive value stock right now.