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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.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 Eni SpA (E - Free Report) . E is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 9.64, which compares to its industry's average of 11.14. Over the past 52 weeks, E's Forward P/E has been as high as 25.61 and as low as 9.25, with a median of 14.05.
Investors should also note that E holds a PEG ratio of 0.49. 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. E's PEG compares to its industry's average PEG of 0.81. Over the past 52 weeks, E's PEG has been as high as 4.43 and as low as 0.48, with a median of 0.74.
We should also highlight that E has a P/B ratio of 1.07. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. E's current P/B looks attractive when compared to its industry's average P/B of 1.33. E's P/B has been as high as 1.25 and as low as 1, with a median of 1.13, over the past year.
Finally, investors will want to recognize that E has a P/CF ratio of 4.50. 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. This stock's P/CF looks attractive against its industry's average P/CF of 6.47. Within the past 12 months, E's P/CF has been as high as 5.74 and as low as 4.23, with a median of 5.12.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Eni SpA is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, E feels like a great value stock at the moment.
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Should Value Investors Buy Eni SpA (E) Stock?
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.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 Eni SpA (E - Free Report) . E is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 9.64, which compares to its industry's average of 11.14. Over the past 52 weeks, E's Forward P/E has been as high as 25.61 and as low as 9.25, with a median of 14.05.
Investors should also note that E holds a PEG ratio of 0.49. 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. E's PEG compares to its industry's average PEG of 0.81. Over the past 52 weeks, E's PEG has been as high as 4.43 and as low as 0.48, with a median of 0.74.
We should also highlight that E has a P/B ratio of 1.07. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. E's current P/B looks attractive when compared to its industry's average P/B of 1.33. E's P/B has been as high as 1.25 and as low as 1, with a median of 1.13, over the past year.
Finally, investors will want to recognize that E has a P/CF ratio of 4.50. 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. This stock's P/CF looks attractive against its industry's average P/CF of 6.47. Within the past 12 months, E's P/CF has been as high as 5.74 and as low as 4.23, with a median of 5.12.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Eni SpA is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, E feels like a great value stock at the moment.