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Should Value Investors Buy Energy Transfer (ET) Stock?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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.
One stock to keep an eye on is Energy Transfer (ET - Free Report) . ET is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 11.08. This compares to its industry's average Forward P/E of 11.76. ET's Forward P/E has been as high as 13.47 and as low as 8.26, with a median of 10.14, all within the past year.
Investors should also recognize that ET has a P/B ratio of 1.22. 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 stock's P/B looks attractive against its industry's average P/B of 1.95. Over the past 12 months, ET's P/B has been as high as 1.28 and as low as 1.04, with a median of 1.17.
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. ET has a P/S ratio of 0.63. This compares to its industry's average P/S of 1.2.
Finally, investors should note that ET has a P/CF ratio of 5.84. 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 stock's P/CF looks attractive against its industry's average P/CF of 8. Over the past 52 weeks, ET's P/CF has been as high as 5.99 and as low as 4.11, with a median of 5.12.
These are just a handful of the figures considered in Energy Transfer'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 ET is an impressive value stock right now.
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Should Value Investors Buy Energy Transfer (ET) Stock?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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.
One stock to keep an eye on is Energy Transfer (ET - Free Report) . ET is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 11.08. This compares to its industry's average Forward P/E of 11.76. ET's Forward P/E has been as high as 13.47 and as low as 8.26, with a median of 10.14, all within the past year.
Investors should also recognize that ET has a P/B ratio of 1.22. 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 stock's P/B looks attractive against its industry's average P/B of 1.95. Over the past 12 months, ET's P/B has been as high as 1.28 and as low as 1.04, with a median of 1.17.
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. ET has a P/S ratio of 0.63. This compares to its industry's average P/S of 1.2.
Finally, investors should note that ET has a P/CF ratio of 5.84. 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 stock's P/CF looks attractive against its industry's average P/CF of 8. Over the past 52 weeks, ET's P/CF has been as high as 5.99 and as low as 4.11, with a median of 5.12.
These are just a handful of the figures considered in Energy Transfer'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 ET is an impressive value stock right now.