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Is Energy Transfer (ET) Stock Undervalued 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 10.72, while its industry has an average P/E of 12.40. ET's Forward P/E has been as high as 13.47 and as low as 8.26, with a median of 10.33, all within the past year.
Another valuation metric that we should highlight is ET's P/B ratio of 1.31. 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 1.96. ET's P/B has been as high as 1.32 and as low as 1.04, with a median of 1.19, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. 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 0.67. This compares to its industry's average P/S of 1.26.
Finally, investors should note that ET has a P/CF ratio of 6.53. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 9. Over the past year, ET's P/CF has been as high as 6.58 and as low as 4.27, with a median of 5.45.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Energy Transfer is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ET feels like a great value stock at the moment.
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Is Energy Transfer (ET) Stock Undervalued Right Now?
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 10.72, while its industry has an average P/E of 12.40. ET's Forward P/E has been as high as 13.47 and as low as 8.26, with a median of 10.33, all within the past year.
Another valuation metric that we should highlight is ET's P/B ratio of 1.31. 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 1.96. ET's P/B has been as high as 1.32 and as low as 1.04, with a median of 1.19, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. 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 0.67. This compares to its industry's average P/S of 1.26.
Finally, investors should note that ET has a P/CF ratio of 6.53. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 9. Over the past year, ET's P/CF has been as high as 6.58 and as low as 4.27, with a median of 5.45.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Energy Transfer is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ET feels like a great value stock at the moment.