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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.
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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 P/E ratio of 11.56 right now. For comparison, its industry sports an average P/E of 19.40. 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 recognize that UGP 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. UGP's current P/B looks attractive when compared to its industry's average P/B of 2.73. 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 should note that UGP has a P/CF ratio of 5.03. 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 12.48. UGP's P/CF has been as high as 5.45 and as low as 3.46, with a median of 4.37, all within the past year.
These are only a few of the key metrics included in Ultrapar Participacoes's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, UGP looks like an impressive value stock at the moment.
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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.
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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 P/E ratio of 11.56 right now. For comparison, its industry sports an average P/E of 19.40. 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 recognize that UGP 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. UGP's current P/B looks attractive when compared to its industry's average P/B of 2.73. 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 should note that UGP has a P/CF ratio of 5.03. 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 12.48. UGP's P/CF has been as high as 5.45 and as low as 3.46, with a median of 4.37, all within the past year.
These are only a few of the key metrics included in Ultrapar Participacoes's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, UGP looks like an impressive value stock at the moment.