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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.
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 company value investors might notice is E.ON (EONGY - Free Report) . EONGY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 12.03 right now. For comparison, its industry sports an average P/E of 13.87. Over the last 12 months, EONGY's Forward P/E has been as high as 13.85 and as low as 7.81, with a median of 10.70.
EONGY is also sporting a PEG ratio of 1.25. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. EONGY's PEG compares to its industry's average PEG of 2.01. Over the last 12 months, EONGY's PEG has been as high as 1.35 and as low as 0.94, with a median of 1.13.
We should also highlight that EONGY has a P/B ratio of 1.27. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 2.26. EONGY's P/B has been as high as 1.40 and as low as 0.74, with a median of 1.03, over the past year.
Finally, we should also recognize that EONGY has a P/CF ratio of 6.70. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. EONGY's P/CF compares to its industry's average P/CF of 12.92. Over the past year, EONGY's P/CF has been as high as 7.39 and as low as 2.09, with a median of 2.83.
If you're looking for another solid Utility - Electric Power value stock, take a look at TransAlta (TAC - Free Report) . TAC is a # 1 (Strong Buy) stock with a Value score of A.
Furthermore, TransAlta holds a P/B ratio of 2.71 and its industry's price-to-book ratio is 2.26. TAC's P/B has been as high as 3.24, as low as 1.87, with a median of 2.46 over the past 12 months.
These are only a few of the key metrics included in E.ON and TransAlta strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, EONGY and TAC look like an impressive value stock at the moment.
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Should Value Investors Buy E.ON (EONGY) Stock?
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.
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 company value investors might notice is E.ON (EONGY - Free Report) . EONGY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 12.03 right now. For comparison, its industry sports an average P/E of 13.87. Over the last 12 months, EONGY's Forward P/E has been as high as 13.85 and as low as 7.81, with a median of 10.70.
EONGY is also sporting a PEG ratio of 1.25. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. EONGY's PEG compares to its industry's average PEG of 2.01. Over the last 12 months, EONGY's PEG has been as high as 1.35 and as low as 0.94, with a median of 1.13.
We should also highlight that EONGY has a P/B ratio of 1.27. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 2.26. EONGY's P/B has been as high as 1.40 and as low as 0.74, with a median of 1.03, over the past year.
Finally, we should also recognize that EONGY has a P/CF ratio of 6.70. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. EONGY's P/CF compares to its industry's average P/CF of 12.92. Over the past year, EONGY's P/CF has been as high as 7.39 and as low as 2.09, with a median of 2.83.
If you're looking for another solid Utility - Electric Power value stock, take a look at TransAlta (TAC - Free Report) . TAC is a # 1 (Strong Buy) stock with a Value score of A.
Furthermore, TransAlta holds a P/B ratio of 2.71 and its industry's price-to-book ratio is 2.26. TAC's P/B has been as high as 3.24, as low as 1.87, with a median of 2.46 over the past 12 months.
These are only a few of the key metrics included in E.ON and TransAlta strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, EONGY and TAC look like an impressive value stock at the moment.