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Is Energy Transfer LP (ET) Stock Undervalued 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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 company value investors might notice is Energy Transfer LP (ET - Free Report) . ET is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 9.09 right now. For comparison, its industry sports an average P/E of 11.69. ET's Forward P/E has been as high as 12.49 and as low as 7.47, with a median of 10.44, all within the past year.
Investors will also notice that ET has a PEG ratio of 0.55. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ET's industry has an average PEG of 1.24 right now. Over the past 52 weeks, ET's PEG has been as high as 0.58 and as low as 0.25, with a median of 0.44.
We should also highlight that ET has a P/B ratio of 1.07. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. ET's current P/B looks attractive when compared to its industry's average P/B of 1.80. Within the past 52 weeks, 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 use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. ET has a P/S ratio of 0.62. This compares to its industry's average P/S of 1.62.
Finally, we should also recognize that ET has a P/CF ratio of 5.55. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 7.75. ET's P/CF has been as high as 7.41 and as low as 2.64, with a median of 6.35, all within the past year.
These are just a handful of the figures considered in Energy Transfer LP's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that ET is an impressive value stock right now.
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Is Energy Transfer LP (ET) Stock Undervalued 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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 company value investors might notice is Energy Transfer LP (ET - Free Report) . ET is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 9.09 right now. For comparison, its industry sports an average P/E of 11.69. ET's Forward P/E has been as high as 12.49 and as low as 7.47, with a median of 10.44, all within the past year.
Investors will also notice that ET has a PEG ratio of 0.55. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ET's industry has an average PEG of 1.24 right now. Over the past 52 weeks, ET's PEG has been as high as 0.58 and as low as 0.25, with a median of 0.44.
We should also highlight that ET has a P/B ratio of 1.07. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. ET's current P/B looks attractive when compared to its industry's average P/B of 1.80. Within the past 52 weeks, 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 use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. ET has a P/S ratio of 0.62. This compares to its industry's average P/S of 1.62.
Finally, we should also recognize that ET has a P/CF ratio of 5.55. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 7.75. ET's P/CF has been as high as 7.41 and as low as 2.64, with a median of 6.35, all within the past year.
These are just a handful of the figures considered in Energy Transfer LP's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that ET is an impressive value stock right now.