Is Enerplus (ERF) a Great Value Stock Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 value investors might notice is Enerplus (ERF). ERF is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 6.40 right now. For comparison, its industry sports an average P/E of 8.66. Over the last 12 months, ERF's Forward P/E has been as high as 8.01 and as low as 4.79, with a median of 6.31.
Finally, our model also underscores that ERF has a P/CF ratio of 3.11. 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 3.82. ERF's P/CF has been as high as 4.33 and as low as 2.28, with a median of 3.08, all within the past year.
Investors could also keep in mind Ovintiv (OVV), an Oil and Gas - Exploration and Production - Canadian stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Ovintiv is trading at a forward earnings multiple of 5.85 at the moment, with a PEG ratio of 0.44. This compares to its industry's average P/E of 8.66 and average PEG ratio of 0.65.
OVV's Forward P/E has been as high as 7.05 and as low as 3.29, with a median of 4.33. During the same time period, its PEG ratio has been as high as 0.53, as low as 0.07, with a median of 0.19.
Ovintiv sports a P/B ratio of 1.41 as well; this compares to its industry's price-to-book ratio of 1.73. In the past 52 weeks, OVV's P/B has been as high as 2.24, as low as 0.99, with a median of 1.39.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Enerplus and Ovintiv are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ERF and OVV feels like a great value stock at the moment.
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Enerplus Corporation (ERF) : Free Stock Analysis Report
Ovintiv Inc. (OVV) : Free Stock Analysis Report
