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Should Value Investors Buy Ultrapar Participacoes (UGP) Stock?
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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.
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 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.
Ultrapar Participacoes (UGP - Free Report) is a stock many investors are watching right now. UGP is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 8.83, while its industry has an average P/E of 17.64. UGP's Forward P/E has been as high as 14.06 and as low as 6.92, with a median of 10.11, all within the past year.
Investors will also notice that UGP has a PEG ratio of 1.76. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. UGP's PEG compares to its industry's average PEG of 2.46. Within the past year, UGP's PEG has been as high as 3.42 and as low as 1.74, with a median of 2.48.
Investors should also recognize that UGP has a P/B ratio of 1.17. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.29. Over the past 12 months, UGP's P/B has been as high as 1.74 and as low as 0.97, with a median of 1.27.
Finally, we should also recognize that UGP has a P/CF ratio of 4.30. 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. UGP's P/CF compares to its industry's average P/CF of 11.20. Over the past 52 weeks, UGP's P/CF has been as high as 5.87 and as low as 3.46, with a median of 4.57.
These are just a handful of the figures considered in Ultrapar Participacoes's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that UGP is an impressive value stock right now.
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Should Value Investors Buy Ultrapar Participacoes (UGP) Stock?
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.
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 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.
Ultrapar Participacoes (UGP - Free Report) is a stock many investors are watching right now. UGP is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 8.83, while its industry has an average P/E of 17.64. UGP's Forward P/E has been as high as 14.06 and as low as 6.92, with a median of 10.11, all within the past year.
Investors will also notice that UGP has a PEG ratio of 1.76. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. UGP's PEG compares to its industry's average PEG of 2.46. Within the past year, UGP's PEG has been as high as 3.42 and as low as 1.74, with a median of 2.48.
Investors should also recognize that UGP has a P/B ratio of 1.17. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.29. Over the past 12 months, UGP's P/B has been as high as 1.74 and as low as 0.97, with a median of 1.27.
Finally, we should also recognize that UGP has a P/CF ratio of 4.30. 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. UGP's P/CF compares to its industry's average P/CF of 11.20. Over the past 52 weeks, UGP's P/CF has been as high as 5.87 and as low as 3.46, with a median of 4.57.
These are just a handful of the figures considered in Ultrapar Participacoes's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that UGP is an impressive value stock right now.