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Is Southwest Gas (SWX) 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.
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.
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 stock to keep an eye on is Southwest Gas (SWX - Free Report) . SWX is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
We also note that SWX holds a PEG ratio of 2.06. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. SWX's PEG compares to its industry's average PEG of 2.14. Over the past 52 weeks, SWX's PEG has been as high as 3.56 and as low as 1.84, with a median of 3.26.
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. SWX has a P/S ratio of 1.04. This compares to its industry's average P/S of 1.56.
Finally, our model also underscores that SWX has a P/CF ratio of 8.57. 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. SWX's P/CF compares to its industry's average P/CF of 8.66. Over the past 52 weeks, SWX's P/CF has been as high as 9.28 and as low as 7.57, with a median of 8.47.
Value investors will likely look at more than just these metrics, but the above data helps show that Southwest Gas is likely undervalued currently. And when considering the strength of its earnings outlook, SWX sticks out at as one of the market's strongest value stocks.
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Is Southwest Gas (SWX) 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.
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.
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 stock to keep an eye on is Southwest Gas (SWX - Free Report) . SWX is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
We also note that SWX holds a PEG ratio of 2.06. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. SWX's PEG compares to its industry's average PEG of 2.14. Over the past 52 weeks, SWX's PEG has been as high as 3.56 and as low as 1.84, with a median of 3.26.
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. SWX has a P/S ratio of 1.04. This compares to its industry's average P/S of 1.56.
Finally, our model also underscores that SWX has a P/CF ratio of 8.57. 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. SWX's P/CF compares to its industry's average P/CF of 8.66. Over the past 52 weeks, SWX's P/CF has been as high as 9.28 and as low as 7.57, with a median of 8.47.
Value investors will likely look at more than just these metrics, but the above data helps show that Southwest Gas is likely undervalued currently. And when considering the strength of its earnings outlook, SWX sticks out at as one of the market's strongest value stocks.