Are Investors Undervaluing Crestwood Equity Partners (CEQP) 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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is Crestwood Equity Partners (CEQP). CEQP is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
We should also highlight that CEQP has a P/B ratio of 1.65. The P/B is a method of comparing a stock's market value to 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 1.75. Within the past 52 weeks, CEQP's P/B has been as high as 1.84 and as low as 1.37, with a median of 1.65.
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. CEQP has a P/S ratio of 0.55. This compares to its industry's average P/S of 0.86.
Finally, investors should note that CEQP has a P/CF ratio of 5.94. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. CEQP's P/CF compares to its industry's average P/CF of 7.38. CEQP's P/CF has been as high as 9.08 and as low as 5.55, with a median of 6.76, all within the past year.
If you're looking for another solid Oil and Gas - Production Pipeline - MLB value stock, take a look at Energy Transfer (ET). ET is a # 2 (Buy) stock with a Value score of A.
Energy Transfer sports a P/B ratio of 1.18 as well; this compares to its industry's price-to-book ratio of 1.75. In the past 52 weeks, ET's P/B has been as high as 1.26, as low as 1.02, with a median of 1.14.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Crestwood Equity Partners and Energy Transfer are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CEQP and ET feels like a great value stock at the moment.
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Crestwood Equity Partners LP (CEQP) : Free Stock Analysis Report
Energy Transfer LP (ET) : Free Stock Analysis Report
