Back to top

Image: Bigstock

Are Investors Undervaluing Noble Midstream Partners (NBLX) Right Now?

Read MoreHide Full Article

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

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 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.

One company value investors might notice is Noble Midstream Partners . NBLX is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value.

Investors should also note that NBLX holds a PEG ratio of 0.93. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. NBLX's PEG compares to its industry's average PEG of 1.58. Over the last 12 months, NBLX's PEG has been as high as 0.93 and as low as 0.32, with a median of 0.45.

We should also highlight that NBLX has a P/B ratio of 0.66. 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 stock's P/B looks attractive against its industry's average P/B of 1.89. Over the past 12 months, NBLX's P/B has been as high as 2.11 and as low as 0.23, with a median of 0.70.

Finally, investors should note that NBLX has a P/CF ratio of 3.21. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 5.44. Within the past 12 months, NBLX's P/CF has been as high as 6.34 and as low as 0.68, with a median of 3.94.

Value investors will likely look at more than just these metrics, but the above data helps show that Noble Midstream Partners is likely undervalued currently. And when considering the strength of its earnings outlook, NBLX sticks out at as one of the market's strongest value stocks.

Published in