Back to top

Image: Bigstock

Is E.ON (EONGY) Stock Undervalued Right Now?

Read MoreHide Full Article

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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 company to watch right now is E.ON (EONGY - Free Report) . EONGY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.

Another valuation metric that we should highlight is EONGY's P/B ratio of 1.75. The P/B ratio is used to compare a stock's market value with 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 2.28. EONGY's P/B has been as high as 1.78 and as low as 1.08, with a median of 1.49, over the past year.

Finally, investors will want to recognize that EONGY has a P/CF ratio of 4.77. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 10.61. EONGY's P/CF has been as high as 6.45 and as low as 2.95, with a median of 5.28, all within the past year.

These are only a few of the key metrics included in E.ON's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, EONGY looks like an impressive value stock at the moment.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


E.ON SE (EONGY) - free report >>

Published in