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.
Are Investors Undervaluing Plains All American Pipeline (PAA) Right Now?
Read MoreHide Full Article
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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
One stock to keep an eye on is Plains All American Pipeline (PAA - Free Report) . PAA is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 12.27, which compares to its industry's average of 12.58. Over the last 12 months, PAA's Forward P/E has been as high as 14.72 and as low as 10.60, with a median of 12.64.
We should also highlight that PAA has a P/B ratio of 1.1. The P/B ratio pits a stock's market value against 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 2.19. PAA's P/B has been as high as 1.37 and as low as 1.02, with a median of 1.14, over the past year.
Finally, our model also underscores that PAA has a P/CF ratio of 6.33. 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. This stock's P/CF looks attractive against its industry's average P/CF of 8.77. Within the past 12 months, PAA's P/CF has been as high as 8.21 and as low as 5.47, with a median of 6.45.
Value investors will likely look at more than just these metrics, but the above data helps show that Plains All American Pipeline is likely undervalued currently. And when considering the strength of its earnings outlook, PAA sticks out as one of the market's strongest value stocks.
View the Zacks #1 Rank List
Image: Bigstock
Are Investors Undervaluing Plains All American Pipeline (PAA) 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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
One stock to keep an eye on is Plains All American Pipeline (PAA - Free Report) . PAA is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 12.27, which compares to its industry's average of 12.58. Over the last 12 months, PAA's Forward P/E has been as high as 14.72 and as low as 10.60, with a median of 12.64.
We should also highlight that PAA has a P/B ratio of 1.1. The P/B ratio pits a stock's market value against 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 2.19. PAA's P/B has been as high as 1.37 and as low as 1.02, with a median of 1.14, over the past year.
Finally, our model also underscores that PAA has a P/CF ratio of 6.33. 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. This stock's P/CF looks attractive against its industry's average P/CF of 8.77. Within the past 12 months, PAA's P/CF has been as high as 8.21 and as low as 5.47, with a median of 6.45.
Value investors will likely look at more than just these metrics, but the above data helps show that Plains All American Pipeline is likely undervalued currently. And when considering the strength of its earnings outlook, PAA sticks out as one of the market's strongest value stocks.