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Is Pampa Energia (PAM) 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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is Pampa Energia (PAM - Free Report) . PAM is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock holds a P/E ratio of 6.06, while its industry has an average P/E of 14. Over the past year, PAM's Forward P/E has been as high as 13.63 and as low as 4.02, with a median of 5.78.
We should also highlight that PAM has a P/B ratio of 0.85. 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. This company's current P/B looks solid when compared to its industry's average P/B of 2.29. Over the past 12 months, PAM's P/B has been as high as 0.87 and as low as 0.51, with a median of 0.68.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. PAM has a P/S ratio of 1.28. This compares to its industry's average P/S of 1.89.
TransAlta (TAC - Free Report) may be another strong Utility - Electric Power stock to add to your shortlist. TAC is a # 1 (Strong Buy) stock with a Value grade of A.
TransAlta sports a P/B ratio of 2.72 as well; this compares to its industry's price-to-book ratio of 2.29. In the past 52 weeks, TAC's P/B has been as high as 3.24, as low as 1.87, with a median of 2.49.
Value investors will likely look at more than just these metrics, but the above data helps show that Pampa Energia and TransAlta are likely undervalued currently. And when considering the strength of its earnings outlook, PAM and TAC sticks out as one of the market's strongest value stocks.
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Is Pampa Energia (PAM) 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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is Pampa Energia (PAM - Free Report) . PAM is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock holds a P/E ratio of 6.06, while its industry has an average P/E of 14. Over the past year, PAM's Forward P/E has been as high as 13.63 and as low as 4.02, with a median of 5.78.
We should also highlight that PAM has a P/B ratio of 0.85. 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. This company's current P/B looks solid when compared to its industry's average P/B of 2.29. Over the past 12 months, PAM's P/B has been as high as 0.87 and as low as 0.51, with a median of 0.68.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. PAM has a P/S ratio of 1.28. This compares to its industry's average P/S of 1.89.
TransAlta (TAC - Free Report) may be another strong Utility - Electric Power stock to add to your shortlist. TAC is a # 1 (Strong Buy) stock with a Value grade of A.
TransAlta sports a P/B ratio of 2.72 as well; this compares to its industry's price-to-book ratio of 2.29. In the past 52 weeks, TAC's P/B has been as high as 3.24, as low as 1.87, with a median of 2.49.
Value investors will likely look at more than just these metrics, but the above data helps show that Pampa Energia and TransAlta are likely undervalued currently. And when considering the strength of its earnings outlook, PAM and TAC sticks out as one of the market's strongest value stocks.