We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Is Centrais Eltricas Brasileiras (EBR) a Great Value Stock Right Now?
Read MoreHide Full Article
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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. 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 stock to keep an eye on is Centrais Eltricas Brasileiras (EBR - Free Report) . EBR is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 6.85, which compares to its industry's average of 14.12. Over the past 52 weeks, EBR's Forward P/E has been as high as 20.56 and as low as 6.81, with a median of 9.63.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. EBR has a P/S ratio of 1.47. This compares to its industry's average P/S of 1.9.
Finally, our model also underscores that EBR has a P/CF ratio of 6.38. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 11.08. Within the past 12 months, EBR's P/CF has been as high as 9.70 and as low as 5.69, with a median of 7.31.
Another great Utility - Electric Power stock you could consider is Companhia Paranaense de Energia COPEL (ELP - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Companhia Paranaense de Energia COPEL also has a P/B ratio of 0.85 compared to its industry's price-to-book ratio of 1.83. Over the past year, its P/B ratio has been as high as 1.04, as low as 0.74, with a median of 0.88.
Value investors will likely look at more than just these metrics, but the above data helps show that Centrais Eltricas Brasileiras and Companhia Paranaense de Energia COPEL are likely undervalued currently. And when considering the strength of its earnings outlook, EBR and ELP sticks out as one of the market's strongest value stocks.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Is Centrais Eltricas Brasileiras (EBR) a Great Value Stock 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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. 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 stock to keep an eye on is Centrais Eltricas Brasileiras (EBR - Free Report) . EBR is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 6.85, which compares to its industry's average of 14.12. Over the past 52 weeks, EBR's Forward P/E has been as high as 20.56 and as low as 6.81, with a median of 9.63.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. EBR has a P/S ratio of 1.47. This compares to its industry's average P/S of 1.9.
Finally, our model also underscores that EBR has a P/CF ratio of 6.38. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 11.08. Within the past 12 months, EBR's P/CF has been as high as 9.70 and as low as 5.69, with a median of 7.31.
Another great Utility - Electric Power stock you could consider is Companhia Paranaense de Energia COPEL (ELP - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Companhia Paranaense de Energia COPEL also has a P/B ratio of 0.85 compared to its industry's price-to-book ratio of 1.83. Over the past year, its P/B ratio has been as high as 1.04, as low as 0.74, with a median of 0.88.
Value investors will likely look at more than just these metrics, but the above data helps show that Centrais Eltricas Brasileiras and Companhia Paranaense de Energia COPEL are likely undervalued currently. And when considering the strength of its earnings outlook, EBR and ELP sticks out as one of the market's strongest value stocks.