Is Companhia Paranaense de Energia COPEL (ELP) Stock Undervalued Right Now?

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company to watch right now is Companhia Paranaense de Energia COPEL (ELP). ELP is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 9.90, which compares to its industry's average of 15.24. Over the past year, ELP's Forward P/E has been as high as 12.09 and as low as 3.37, with a median of 8.48.

We should also highlight that ELP has a P/B ratio of 0.87. 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 solid versus its industry's average P/B of 2.49. Within the past 52 weeks, ELP's P/B has been as high as 1.03 and as low as 0.66, with a median of 0.84.

If you're looking for another solid Utility - Electric Power value stock, take a look at RWE AG (RWEOY). RWEOY is a # 2 (Buy) stock with a Value score of A.

Shares of RWE AG are currently trading at a forward earnings multiple of 11.23 and a PEG ratio of 2.52 compared to its industry's P/E and PEG ratios of 15.24 and 2.13, respectively.

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