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Is Plains All American Pipeline (PAA) a Great Value Stock Right Now?
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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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 Plains All American Pipeline (PAA - Free Report) . PAA is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
Investors should also recognize that PAA has a P/B ratio of 1.07. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.85. PAA's P/B has been as high as 1.16 and as low as 0.79, with a median of 0.95, over the past year.
Finally, investors will want to recognize that PAA has a P/CF ratio of 5.76. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. PAA's current P/CF looks attractive when compared to its industry's average P/CF of 8.48. Within the past 12 months, PAA's P/CF has been as high as 6.24 and as low as 3.90, with a median of 4.77.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Plains All American Pipeline is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, PAA feels like a great value stock at the moment.
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Is Plains All American Pipeline (PAA) a Great Value Stock Right Now?
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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 Plains All American Pipeline (PAA - Free Report) . PAA is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
Investors should also recognize that PAA has a P/B ratio of 1.07. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.85. PAA's P/B has been as high as 1.16 and as low as 0.79, with a median of 0.95, over the past year.
Finally, investors will want to recognize that PAA has a P/CF ratio of 5.76. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. PAA's current P/CF looks attractive when compared to its industry's average P/CF of 8.48. Within the past 12 months, PAA's P/CF has been as high as 6.24 and as low as 3.90, with a median of 4.77.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Plains All American Pipeline is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, PAA feels like a great value stock at the moment.