Is Eni (E) Stock Undervalued 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.
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.
One company value investors might notice is Eni (E). E is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 3.57, while its industry has an average P/E of 5.91. E's Forward P/E has been as high as 12.27 and as low as 3.57, with a median of 7.55, all within the past year.
E is also sporting a PEG ratio of 0.35. 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. E's industry has an average PEG of 0.46 right now. Over the last 12 months, E's PEG has been as high as 1.27 and as low as 0.35, with a median of 0.51.
We should also highlight that E has a P/B ratio of 0.77. 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 1.27. Over the past year, E's P/B has been as high as 1.13 and as low as 0.75, with a median of 1.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. E has a P/S ratio of 0.38. This compares to its industry's average P/S of 0.56.
Finally, investors will want to recognize that E has a P/CF ratio of 2.19. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. E's P/CF compares to its industry's average P/CF of 5.46. E's P/CF has been as high as 5.94 and as low as 2.12, with a median of 3.55, all within the past year.
If you're looking for another solid Oil and Gas - Integrated - International value stock, take a look at Shell (SHEL). SHEL is a # 1 (Strong Buy) stock with a Value score of A.
Shell is trading at a forward earnings multiple of 4.76 at the moment, with a PEG ratio of 0.63. This compares to its industry's average P/E of 5.91 and average PEG ratio of 0.46.
SHEL's Forward P/E has been as high as 9.46 and as low as 4.76, with a median of 7.12. During the same time period, its PEG ratio has been as high as 2.37, as low as 0.60, with a median of 1.78.
Shell also has a P/B ratio of 1.05 compared to its industry's price-to-book ratio of 1.27. Over the past year, its P/B ratio has been as high as 1.31, as low as 0.85, with a median of 1.08.
These are just a handful of the figures considered in Eni and Shell'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 E and SHEL is an impressive value stock right now.
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