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Is Energy Transfer Partners, L.P. (ETP) a Great Value Stock Right Now?

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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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One stock to keep an eye on is Energy Transfer Partners, L.P. . ETP is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.

Investors should also note that ETP holds a PEG ratio of 1.08. 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. ETP's PEG compares to its industry's average PEG of 2.10. ETP's PEG has been as high as 1.43 and as low as 0.86, with a median of 1.12, all within the past year.

Investors should also recognize that ETP has a P/B ratio of 0.80. 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 attractive against its industry's average P/B of 1.52. Within the past 52 weeks, ETP's P/B has been as high as 0.88 and as low as 0.56, with a median of 0.66.

Finally, our model also underscores that ETP has a P/CF ratio of 5. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. ETP's current P/CF looks attractive when compared to its industry's average P/CF of 9.12. Over the past 52 weeks, ETP's P/CF has been as high as 11.86 and as low as 3.57, with a median of 5.03.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Energy Transfer Partners, L.P. Is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ETP feels like a great value stock at the moment.