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Are Investors Undervaluing Energy Transfer LP (ET) 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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
Energy Transfer LP (ET - Free Report) is a stock many investors are watching right now. ET is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 9.60, while its industry has an average P/E of 11.60. Over the past year, ET's Forward P/E has been as high as 12.49 and as low as 7.47, with a median of 10.54.
We should also highlight that ET has a P/B ratio of 1.12. 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 1.79. Over the past year, ET's P/B has been as high as 1.33 and as low as 0.44, with a median of 1.19.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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. ET has a P/S ratio of 0.63. This compares to its industry's average P/S of 1.59.
Finally, investors will want to recognize that ET has a P/CF ratio of 5.78. 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 7.69. Over the past 52 weeks, ET's P/CF has been as high as 7.36 and as low as 2.62, with a median of 6.32.
These are only a few of the key metrics included in Energy Transfer LP'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, ET looks like an impressive value stock at the moment.
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Are Investors Undervaluing Energy Transfer LP (ET) Right Now?
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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
Energy Transfer LP (ET - Free Report) is a stock many investors are watching right now. ET is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 9.60, while its industry has an average P/E of 11.60. Over the past year, ET's Forward P/E has been as high as 12.49 and as low as 7.47, with a median of 10.54.
We should also highlight that ET has a P/B ratio of 1.12. 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 1.79. Over the past year, ET's P/B has been as high as 1.33 and as low as 0.44, with a median of 1.19.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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. ET has a P/S ratio of 0.63. This compares to its industry's average P/S of 1.59.
Finally, investors will want to recognize that ET has a P/CF ratio of 5.78. 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 7.69. Over the past 52 weeks, ET's P/CF has been as high as 7.36 and as low as 2.62, with a median of 6.32.
These are only a few of the key metrics included in Energy Transfer LP'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, ET looks like an impressive value stock at the moment.