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Is Enterprise Products Partners (EPD) Stock Undervalued Right Now?

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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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 Enterprise Products Partners (EPD - Free Report) . EPD is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 10.36 right now. For comparison, its industry sports an average P/E of 12.12. Over the last 12 months, EPD's Forward P/E has been as high as 11.18 and as low as 9.69, with a median of 10.28.

Finally, investors should note that EPD has a P/CF ratio of 7.89. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 8.77. EPD's P/CF has been as high as 8.22 and as low as 7.07, with a median of 7.61, all within the past year.

Value investors will likely look at more than just these metrics, but the above data helps show that Enterprise Products Partners is likely undervalued currently. And when considering the strength of its earnings outlook, EPD sticks out at as one of the market's strongest value stocks.


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