Back to top

Image: Bigstock

Is Companhia Paranaense de Energia COPEL (ELP) Stock Undervalued Right Now?

Read MoreHide Full Article

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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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 Companhia Paranaense de Energia COPEL (ELP - Free Report) . ELP is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 9.67, while its industry has an average P/E of 13.96. Over the last 12 months, ELP's Forward P/E has been as high as 13.47 and as low as 9.07, with a median of 10.42.

We should also highlight that ELP has a P/B ratio of 0.83. 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. This stock's P/B looks solid versus its industry's average P/B of 1.81. Over the past 12 months, ELP's P/B has been as high as 1.04 and as low as 0.74, with a median of 0.88.

Investors could also keep in mind E.ON (EONGY - Free Report) , an Utility - Electric Power stock with a Zacks Rank of # 2 (Buy) and Value grade of A.

E.ON is currently trading with a Forward P/E ratio of 12.10 while its PEG ratio sits at 1.25. Both of the company's metrics compare favorably to its industry's average P/E of 13.96 and average PEG ratio of 1.98.

EONGY's Forward P/E has been as high as 12.97 and as low as 7.81, with a median of 10.39. During the same time period, its PEG ratio has been as high as 1.56, as low as 0.94, with a median of 1.23.

E.ON sports a P/B ratio of 1.12 as well; this compares to its industry's price-to-book ratio of 1.81. In the past 52 weeks, EONGY's P/B has been as high as 1.68, as low as 0.74, with a median of 1.03.

These are only a few of the key metrics included in Companhia Paranaense de Energia COPEL and E.ON strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, ELP and EONGY look like an impressive value stock at the moment.

See More Zacks Research for These Tickers

Normally $25 each - click below to receive one report FREE:

Companhia Paranaense de Energia (COPEL) (ELP) - free report >>

E.ON SE (EONGY) - free report >>

Published in