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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
Enel (ENLAY - Free Report) is a stock many investors are watching right now. ENLAY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 9.70 right now. For comparison, its industry sports an average P/E of 14.47. ENLAY's Forward P/E has been as high as 10.84 and as low as 6.82, with a median of 8.56, all within the past year.
We also note that ENLAY holds a PEG ratio of 1.36. 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. ENLAY's PEG compares to its industry's average PEG of 2.13. Within the past year, ENLAY's PEG has been as high as 1.60 and as low as 0.95, with a median of 1.19.
Investors should also recognize that ENLAY has a P/B ratio of 1.25. 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. ENLAY's current P/B looks attractive when compared to its industry's average P/B of 2.13. ENLAY's P/B has been as high as 1.58 and as low as 0.78, with a median of 1.12, over the past year.
If you're looking for another solid Utility - Electric Power value stock, take a look at NRG Energy (NRG - Free Report) . NRG is a # 1 (Strong Buy) stock with a Value score of A.
Shares of NRG Energy are currently trading at a forward earnings multiple of 6.46 and a PEG ratio of 0.54 compared to its industry's P/E and PEG ratios of 14.47 and 2.13, respectively.
NRG's Forward P/E has been as high as 13.06 and as low as 2.87, with a median of 8.56. During the same time period, its PEG ratio has been as high as 1.24, as low as 0.13, with a median of 0.69.
Additionally, NRG Energy has a P/B ratio of 1.45 while its industry's price-to-book ratio sits at 2.13. For NRG, this valuation metric has been as high as 2.78, as low as 1.39, with a median of 1.89 over the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Enel and NRG Energy are likely undervalued currently. And when considering the strength of its earnings outlook, ENLAY and NRG sticks out as one of the market's strongest value stocks.
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Should Value Investors Buy Enel (ENLAY) Stock?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
Enel (ENLAY - Free Report) is a stock many investors are watching right now. ENLAY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 9.70 right now. For comparison, its industry sports an average P/E of 14.47. ENLAY's Forward P/E has been as high as 10.84 and as low as 6.82, with a median of 8.56, all within the past year.
We also note that ENLAY holds a PEG ratio of 1.36. 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. ENLAY's PEG compares to its industry's average PEG of 2.13. Within the past year, ENLAY's PEG has been as high as 1.60 and as low as 0.95, with a median of 1.19.
Investors should also recognize that ENLAY has a P/B ratio of 1.25. 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. ENLAY's current P/B looks attractive when compared to its industry's average P/B of 2.13. ENLAY's P/B has been as high as 1.58 and as low as 0.78, with a median of 1.12, over the past year.
If you're looking for another solid Utility - Electric Power value stock, take a look at NRG Energy (NRG - Free Report) . NRG is a # 1 (Strong Buy) stock with a Value score of A.
Shares of NRG Energy are currently trading at a forward earnings multiple of 6.46 and a PEG ratio of 0.54 compared to its industry's P/E and PEG ratios of 14.47 and 2.13, respectively.
NRG's Forward P/E has been as high as 13.06 and as low as 2.87, with a median of 8.56. During the same time period, its PEG ratio has been as high as 1.24, as low as 0.13, with a median of 0.69.
Additionally, NRG Energy has a P/B ratio of 1.45 while its industry's price-to-book ratio sits at 2.13. For NRG, this valuation metric has been as high as 2.78, as low as 1.39, with a median of 1.89 over the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Enel and NRG Energy are likely undervalued currently. And when considering the strength of its earnings outlook, ENLAY and NRG sticks out as one of the market's strongest value stocks.