We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. 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 UGI (UGI - Free Report) . UGI is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 11.36 right now. For comparison, its industry sports an average P/E of 15.40. Over the past 52 weeks, UGI's Forward P/E has been as high as 11.70 and as low as 7.25, with a median of 9.41.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. UGI has a P/S ratio of 1.07. This compares to its industry's average P/S of 1.59.
Finally, investors will want to recognize that UGI has a P/CF ratio of 6.17. 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. UGI's current P/CF looks attractive when compared to its industry's average P/CF of 8.78. Over the past year, UGI's P/CF has been as high as 6.44 and as low as 3.81, with a median of 5.25.
These figures are just a handful of the metrics value investors tend to look at, but they help show that UGI is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, UGI feels like a great value stock at the moment.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Is UGI (UGI) Stock Undervalued Right Now?
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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. 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 UGI (UGI - Free Report) . UGI is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 11.36 right now. For comparison, its industry sports an average P/E of 15.40. Over the past 52 weeks, UGI's Forward P/E has been as high as 11.70 and as low as 7.25, with a median of 9.41.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. UGI has a P/S ratio of 1.07. This compares to its industry's average P/S of 1.59.
Finally, investors will want to recognize that UGI has a P/CF ratio of 6.17. 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. UGI's current P/CF looks attractive when compared to its industry's average P/CF of 8.78. Over the past year, UGI's P/CF has been as high as 6.44 and as low as 3.81, with a median of 5.25.
These figures are just a handful of the metrics value investors tend to look at, but they help show that UGI is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, UGI feels like a great value stock at the moment.