Is E.ON (EONGY) a Great Value Stock 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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. 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.
E.ON (EONGY) is a stock many investors are watching right now. EONGY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 11.46 right now. For comparison, its industry sports an average P/E of 14.68. Over the past 52 weeks, EONGY's Forward P/E has been as high as 13.85 and as low as 7.81, with a median of 10.96.
Investors should also note that EONGY holds a PEG ratio of 1.25. 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. EONGY's PEG compares to its industry's average PEG of 2.07. EONGY's PEG has been as high as 1.35 and as low as 0.94, with a median of 1.13, all within the past year.
Investors should also recognize that EONGY has a P/B ratio of 1.43. 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 company's current P/B looks solid when compared to its industry's average P/B of 2.23. Over the past 12 months, EONGY's P/B has been as high as 1.49 and as low as 0.74, with a median of 1.13.
Finally, our model also underscores that EONGY has a P/CF ratio of 7.59. 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 12.69. Over the past 52 weeks, EONGY's P/CF has been as high as 7.95 and as low as 2.09, with a median of 4.69.
TransAlta (TAC) may be another strong Utility - Electric Power stock to add to your shortlist. TAC is a # 1 (Strong Buy) stock with a Value grade of A.
Furthermore, TransAlta holds a P/B ratio of 2.61 and its industry's price-to-book ratio is 2.23. TAC's P/B has been as high as 3.24, as low as 1.87, with a median of 2.54 over the past 12 months.
These are just a handful of the figures considered in E.ON and TransAlta'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 EONGY and TAC is an impressive value stock right now.
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E.ON SE (EONGY) : Free Stock Analysis Report
TransAlta Corporation (TAC) : Free Stock Analysis Report
