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Should Value Investors Buy Ultrapar Participacoes (UGP) Stock?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
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.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is Ultrapar Participacoes (UGP - Free Report) . UGP is currently sporting a Zacks Rank #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 11.56, which compares to its industry's average of 18.63. Over the last 12 months, UGP's Forward P/E has been as high as 12.93 and as low as 6.92, with a median of 10.05.
Investors should also note that UGP holds a PEG ratio of 2.13. 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 2.53. Over the past 52 weeks, UGP's PEG has been as high as 3.38 and as low as 1.74, with a median of 2.47.
We should also highlight that UGP has a P/B ratio of 1.34. The P/B is a method of comparing a stock's market value to 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 2.45. Over the past 12 months, UGP's P/B has been as high as 1.61 and as low as 0.97, with a median of 1.19.
Finally, investors will want to recognize that UGP has a P/CF ratio of 5.03. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 11.68. Over the past 52 weeks, UGP's P/CF has been as high as 5.45 and as low as 3.46, with a median of 4.37.
Investors could also keep in mind Expro Group Holdings (XPRO - Free Report) , another Oil and Gas - Production and Pipelines stock with a Zacks Rank of #2 (Buy) and Value grade of A.
Shares of Expro Group Holdings are currently trading at a forward earnings multiple of 13.38 and a PEG ratio of 0.67 compared to its industry's P/E and PEG ratios of 18.63 and 2.53, respectively.
Over the past year, XPRO's P/E has been as high as 27.24, as low as 6.32, with a median of 11.85; its PEG ratio has been as high as 1.25, as low as 0.53, with a median of 0.89 during the same time period.
Expro Group Holdings sports a P/B ratio of 0.91 as well; this compares to its industry's price-to-book ratio of 2.45. In the past 52 weeks, XPRO's P/B has been as high as 1.45, as low as 0.53, with a median of 0.91.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Ultrapar Participacoes and Expro Group Holdings are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, UGP and XPRO feels like a great value stock at the moment.
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Should Value Investors Buy Ultrapar Participacoes (UGP) Stock?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
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.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is Ultrapar Participacoes (UGP - Free Report) . UGP is currently sporting a Zacks Rank #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 11.56, which compares to its industry's average of 18.63. Over the last 12 months, UGP's Forward P/E has been as high as 12.93 and as low as 6.92, with a median of 10.05.
Investors should also note that UGP holds a PEG ratio of 2.13. 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 2.53. Over the past 52 weeks, UGP's PEG has been as high as 3.38 and as low as 1.74, with a median of 2.47.
We should also highlight that UGP has a P/B ratio of 1.34. The P/B is a method of comparing a stock's market value to 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 2.45. Over the past 12 months, UGP's P/B has been as high as 1.61 and as low as 0.97, with a median of 1.19.
Finally, investors will want to recognize that UGP has a P/CF ratio of 5.03. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 11.68. Over the past 52 weeks, UGP's P/CF has been as high as 5.45 and as low as 3.46, with a median of 4.37.
Investors could also keep in mind Expro Group Holdings (XPRO - Free Report) , another Oil and Gas - Production and Pipelines stock with a Zacks Rank of #2 (Buy) and Value grade of A.
Shares of Expro Group Holdings are currently trading at a forward earnings multiple of 13.38 and a PEG ratio of 0.67 compared to its industry's P/E and PEG ratios of 18.63 and 2.53, respectively.
Over the past year, XPRO's P/E has been as high as 27.24, as low as 6.32, with a median of 11.85; its PEG ratio has been as high as 1.25, as low as 0.53, with a median of 0.89 during the same time period.
Expro Group Holdings sports a P/B ratio of 0.91 as well; this compares to its industry's price-to-book ratio of 2.45. In the past 52 weeks, XPRO's P/B has been as high as 1.45, as low as 0.53, with a median of 0.91.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Ultrapar Participacoes and Expro Group Holdings are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, UGP and XPRO feels like a great value stock at the moment.