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Is Ultrapar Participacoes (UGP) Stock Undervalued 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.
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 value investors might notice is Ultrapar Participacoes (UGP - Free Report) . UGP is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 11.56 right now. For comparison, its industry sports an average P/E of 20.69. Over the past 52 weeks, UGP's Forward P/E has been as high as 12.93 and as low as 6.92, with a median of 10.05.
Another notable valuation metric for UGP is its 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. UGP's current P/B looks attractive when compared to its industry's average P/B of 2.82. 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, our model also underscores 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 12.57. 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.
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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Is Ultrapar Participacoes (UGP) Stock Undervalued 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.
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 value investors might notice is Ultrapar Participacoes (UGP - Free Report) . UGP is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 11.56 right now. For comparison, its industry sports an average P/E of 20.69. Over the past 52 weeks, UGP's Forward P/E has been as high as 12.93 and as low as 6.92, with a median of 10.05.
Another notable valuation metric for UGP is its 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. UGP's current P/B looks attractive when compared to its industry's average P/B of 2.82. 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, our model also underscores 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 12.57. 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.
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.