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Is Enerplus (ERF) Stock Undervalued 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.

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.

Enerplus (ERF - Free Report) is a stock many investors are watching right now. ERF is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 6.87. This compares to its industry's average Forward P/E of 12.53. Over the last 12 months, ERF's Forward P/E has been as high as 9.24 and as low as 6, with a median of 7.24.

Finally, our model also underscores that ERF has a P/CF ratio of 2.68. 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 3.35. Over the past year, ERF's P/CF has been as high as 4.47 and as low as 2.30, with a median of 3.07.

These are just a handful of the figures considered in Enerplus'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 ERF is an impressive value stock right now.


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