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Is Enterprise Products Partners (EPD) 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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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.

One company to watch right now is Enterprise Products Partners (EPD - Free Report) . EPD is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 10.18, which compares to its industry's average of 11.59. Over the past year, EPD's Forward P/E has been as high as 11.18 and as low as 9.69, with a median of 10.25.

Finally, investors should note that EPD has a P/CF ratio of 7.76. 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. This stock's P/CF looks attractive against its industry's average P/CF of 8.88. Over the past 52 weeks, EPD's P/CF has been as high as 8.25 and as low as 7.06, with a median of 7.59.

If you're looking for another solid Oil and Gas - Production Pipeline - MLB value stock, take a look at Plains All American Pipeline (PAA - Free Report) . PAA is a # 2 (Buy) stock with a Value score of A.

Plains All American Pipeline also has a P/B ratio of 1.07 compared to its industry's price-to-book ratio of 2.04. Over the past year, its P/B ratio has been as high as 1.16, as low as 0.77, with a median of 0.94.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Enterprise Products Partners and Plains All American Pipeline are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, EPD and PAA feels like a great value stock at the moment.


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Plains All American Pipeline, L.P. (PAA) - free report >>

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