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Should Value Investors Buy Enterprise Products Partners (EPD) Stock?
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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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Enterprise Products Partners (EPD - Free Report) . EPD is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 9.05 right now. For comparison, its industry sports an average P/E of 11.29. Over the past year, EPD's Forward P/E has been as high as 14.27 and as low as 5.60, with a median of 12.02.
Investors should also note that EPD holds a PEG ratio of 2.62. 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. EPD's PEG compares to its industry's average PEG of 2.63. EPD's PEG has been as high as 3.57 and as low as 2.62, with a median of 3.18, all within the past year.
We should also highlight that EPD has a P/B ratio of 1.50. 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 1.70. Over the past 12 months, EPD's P/B has been as high as 2.69 and as low as 1.04, with a median of 2.27.
Finally, we should also recognize that EPD has a P/CF ratio of 5.79. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 7.24. EPD's P/CF has been as high as 10.17 and as low as 4.08, with a median of 8.96, all within the past year.
These are just a handful of the figures considered in Enterprise Products Partners'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 EPD is an impressive value stock right now.
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Should Value Investors Buy Enterprise Products Partners (EPD) Stock?
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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Enterprise Products Partners (EPD - Free Report) . EPD is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 9.05 right now. For comparison, its industry sports an average P/E of 11.29. Over the past year, EPD's Forward P/E has been as high as 14.27 and as low as 5.60, with a median of 12.02.
Investors should also note that EPD holds a PEG ratio of 2.62. 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. EPD's PEG compares to its industry's average PEG of 2.63. EPD's PEG has been as high as 3.57 and as low as 2.62, with a median of 3.18, all within the past year.
We should also highlight that EPD has a P/B ratio of 1.50. 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 1.70. Over the past 12 months, EPD's P/B has been as high as 2.69 and as low as 1.04, with a median of 2.27.
Finally, we should also recognize that EPD has a P/CF ratio of 5.79. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 7.24. EPD's P/CF has been as high as 10.17 and as low as 4.08, with a median of 8.96, all within the past year.
These are just a handful of the figures considered in Enterprise Products Partners'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 EPD is an impressive value stock right now.