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Should Value Investors Buy Enterprise Products Partners (EPD) Stock?

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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 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.

Enterprise Products Partners (EPD - Free Report) is a stock many investors are watching right now. EPD is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 10.36, which compares to its industry's average of 11.96. Over the last 12 months, EPD's Forward P/E has been as high as 10.88 and as low as 9.69, with a median of 10.21.

Finally, investors should note that EPD has a P/CF ratio of 7.67. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. EPD's P/CF compares to its industry's average P/CF of 8.14. EPD's P/CF has been as high as 7.89 and as low as 7.06, with a median of 7.51, all within the past year.

These are just a handful of the figures considered in Enterprise Products Partners'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 EPD is an impressive value stock right now.


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