Back to top

Image: Bigstock

Is E.ON (EONGY) a Great Value Stock Right Now?

Read MoreHide Full Article

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 company value investors might notice is E.ON (EONGY - Free Report) . EONGY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 11.75, which compares to its industry's average of 13.35. Over the past year, EONGY's Forward P/E has been as high as 16.24 and as low as 11.71, with a median of 13.75.

Investors should also note that EONGY holds a PEG ratio of 1.45. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. EONGY's industry currently sports an average PEG of 2.21. Over the last 12 months, EONGY's PEG has been as high as 2.13 and as low as 0.89, with a median of 1.55.

Finally, investors should note that EONGY has a P/CF ratio of 3.26. 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 8.63. Over the past year, EONGY's P/CF has been as high as 7.71 and as low as 2.81, with a median of 3.45.

These are only a few of the key metrics included in E.ON'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, EONGY looks like an impressive value stock at the moment.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


E.ON SE (EONGY) - free report >>

Published in