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Is Transportadora De Gas Ord B (TGS) a Great Value Stock Right Now?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 to watch right now is Transportadora De Gas Ord B (TGS - Free Report) . TGS is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 11.56, while its industry has an average P/E of 14.36. Over the past 52 weeks, TGS's Forward P/E has been as high as 176.19 and as low as -3,407.95, with a median of 18.38.

Another notable valuation metric for TGS is its P/B ratio of 0.79. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. TGS's current P/B looks attractive when compared to its industry's average P/B of 1.64. Over the past 12 months, TGS's P/B has been as high as 1.22 and as low as 0.62, with a median of 0.91.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. TGS has a P/S ratio of 1.54. This compares to its industry's average P/S of 2.21.

Finally, we should also recognize that TGS has a P/CF ratio of 5.27. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 9.50. Over the past year, TGS's P/CF has been as high as 7.08 and as low as 3.33, with a median of 5.49.

These are just a handful of the figures considered in Transportadora De Gas Ord B'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 TGS is an impressive value stock right now.


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