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Is Centrais Eltricas Brasileiras (EBR) Stock Undervalued Right Now?
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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.
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.
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.
Centrais Eltricas Brasileiras (EBR - Free Report) is a stock many investors are watching right now. EBR is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 6.53. This compares to its industry's average Forward P/E of 14. Over the past year, EBR's Forward P/E has been as high as 20.56 and as low as 6.20, with a median of 9.51.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. 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 1.53. This compares to its industry's average P/S of 1.91.
Finally, investors should note that EBR has a P/CF ratio of 6.08. 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. EBR's P/CF compares to its industry's average P/CF of 11.06. Over the past 52 weeks, EBR's P/CF has been as high as 9.70 and as low as 5.69, with a median of 7.31.
If you're looking for another solid Utility - Electric Power value stock, take a look at E.ON (EONGY - Free Report) . EONGY is a # 1 (Strong Buy) stock with a Value score of A.
E.ON is trading at a forward earnings multiple of 12.22 at the moment, with a PEG ratio of 1.25. This compares to its industry's average P/E of 14 and average PEG ratio of 1.98.
Over the last 12 months, EONGY's P/E has been as high as 12.38, as low as 7.81, with a median of 10.39, and its PEG ratio has been as high as 1.42, as low as 0.94, with a median of 1.21.
E.ON sports a P/B ratio of 1.14 as well; this compares to its industry's price-to-book ratio of 1.97. In the past 52 weeks, EONGY's P/B has been as high as 1.49, as low as 0.74, with a median of 1.03.
These are just a handful of the figures considered in Centrais Eltricas Brasileiras and E.ON'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 EBR and EONGY is an impressive value stock right now.
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Is Centrais Eltricas Brasileiras (EBR) Stock Undervalued Right Now?
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.
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.
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.
Centrais Eltricas Brasileiras (EBR - Free Report) is a stock many investors are watching right now. EBR is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 6.53. This compares to its industry's average Forward P/E of 14. Over the past year, EBR's Forward P/E has been as high as 20.56 and as low as 6.20, with a median of 9.51.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. 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 1.53. This compares to its industry's average P/S of 1.91.
Finally, investors should note that EBR has a P/CF ratio of 6.08. 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. EBR's P/CF compares to its industry's average P/CF of 11.06. Over the past 52 weeks, EBR's P/CF has been as high as 9.70 and as low as 5.69, with a median of 7.31.
If you're looking for another solid Utility - Electric Power value stock, take a look at E.ON (EONGY - Free Report) . EONGY is a # 1 (Strong Buy) stock with a Value score of A.
E.ON is trading at a forward earnings multiple of 12.22 at the moment, with a PEG ratio of 1.25. This compares to its industry's average P/E of 14 and average PEG ratio of 1.98.
Over the last 12 months, EONGY's P/E has been as high as 12.38, as low as 7.81, with a median of 10.39, and its PEG ratio has been as high as 1.42, as low as 0.94, with a median of 1.21.
E.ON sports a P/B ratio of 1.14 as well; this compares to its industry's price-to-book ratio of 1.97. In the past 52 weeks, EONGY's P/B has been as high as 1.49, as low as 0.74, with a median of 1.03.
These are just a handful of the figures considered in Centrais Eltricas Brasileiras and E.ON'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 EBR and EONGY is an impressive value stock right now.