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Are Investors Undervaluing Summit Midstream Partners, LP (SMLP) Right Now?
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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 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 Summit Midstream Partners, LP (SMLP - Free Report) . SMLP is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 10.71. This compares to its industry's average Forward P/E of 13.71. Over the past year, SMLP's Forward P/E has been as high as 40.10 and as low as -58.16, with a median of 17.89.
We should also highlight that SMLP has a P/B ratio of 0.80. 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. This company's current P/B looks solid when compared to its industry's average P/B of 1.68. Within the past 52 weeks, SMLP's P/B has been as high as 1.38 and as low as 0.75, with a median of 1.10.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. SMLP has a P/S ratio of 1.43. This compares to its industry's average P/S of 1.72.
Finally, our model also underscores that SMLP has a P/CF ratio of 4.75. 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 9.55. Within the past 12 months, SMLP's P/CF has been as high as 12.62 and as low as 4.49, with a median of 6.74.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Summit Midstream Partners, LP is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SMLP feels like a great value stock at the moment.
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Are Investors Undervaluing Summit Midstream Partners, LP (SMLP) 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.
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 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 Summit Midstream Partners, LP (SMLP - Free Report) . SMLP is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 10.71. This compares to its industry's average Forward P/E of 13.71. Over the past year, SMLP's Forward P/E has been as high as 40.10 and as low as -58.16, with a median of 17.89.
We should also highlight that SMLP has a P/B ratio of 0.80. 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. This company's current P/B looks solid when compared to its industry's average P/B of 1.68. Within the past 52 weeks, SMLP's P/B has been as high as 1.38 and as low as 0.75, with a median of 1.10.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. SMLP has a P/S ratio of 1.43. This compares to its industry's average P/S of 1.72.
Finally, our model also underscores that SMLP has a P/CF ratio of 4.75. 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 9.55. Within the past 12 months, SMLP's P/CF has been as high as 12.62 and as low as 4.49, with a median of 6.74.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Summit Midstream Partners, LP is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SMLP feels like a great value stock at the moment.