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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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
PG&E (PCG - Free Report) is a stock many investors are watching right now. PCG is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 9.36 right now. For comparison, its industry sports an average P/E of 15.42. Over the past 52 weeks, PCG's Forward P/E has been as high as 14.79 and as low as 8.28, with a median of 10.97.
PCG is also sporting a PEG ratio of 1.05. 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. PCG's industry currently sports an average PEG of 1.75. Within the past year, PCG's PEG has been as high as 1.54 and as low as 0.88, with a median of 1.13.
Investors should also recognize that PCG has a P/B ratio of 1.34. 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. PCG's current P/B looks attractive when compared to its industry's average P/B of 2.64. PCG's P/B has been as high as 2.09 and as low as 1.16, with a median of 1.54, over the past year.
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 preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. PCG has a P/S ratio of 1.4. This compares to its industry's average P/S of 2.51.
Finally, investors should note that PCG has a P/CF ratio of 4.89. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. PCG's P/CF compares to its industry's average P/CF of 13.41. Over the past year, PCG's P/CF has been as high as 6.87 and as low as 4.26, with a median of 5.49.
These figures are just a handful of the metrics value investors tend to look at, but they help show that PG&E is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, PCG feels like a great value stock at the moment.
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Is PG&E (PCG) a Great Value Stock 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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
PG&E (PCG - Free Report) is a stock many investors are watching right now. PCG is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 9.36 right now. For comparison, its industry sports an average P/E of 15.42. Over the past 52 weeks, PCG's Forward P/E has been as high as 14.79 and as low as 8.28, with a median of 10.97.
PCG is also sporting a PEG ratio of 1.05. 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. PCG's industry currently sports an average PEG of 1.75. Within the past year, PCG's PEG has been as high as 1.54 and as low as 0.88, with a median of 1.13.
Investors should also recognize that PCG has a P/B ratio of 1.34. 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. PCG's current P/B looks attractive when compared to its industry's average P/B of 2.64. PCG's P/B has been as high as 2.09 and as low as 1.16, with a median of 1.54, over the past year.
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 preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. PCG has a P/S ratio of 1.4. This compares to its industry's average P/S of 2.51.
Finally, investors should note that PCG has a P/CF ratio of 4.89. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. PCG's P/CF compares to its industry's average P/CF of 13.41. Over the past year, PCG's P/CF has been as high as 6.87 and as low as 4.26, with a median of 5.49.
These figures are just a handful of the metrics value investors tend to look at, but they help show that PG&E is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, PCG feels like a great value stock at the moment.