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Are Investors Undervaluing Sunrun (RUN) Right Now?

Zacks Equity Research
SeaSpine (SPNE) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

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.

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 stock to keep an eye on is Sunrun (RUN). RUN is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 12.50. This compares to its industry's average Forward P/E of 31.40. Over the past year, RUN's Forward P/E has been as high as 14.75 and as low as 5.09, with a median of 10.94.

Investors will also notice that RUN has a PEG ratio of 0.60. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. RUN's industry has an average PEG of 1.64 right now. RUN's PEG has been as high as 1.01 and as low as 0.29, with a median of 0.64, all within the past year.

We should also highlight that RUN has a P/B ratio of 1.29. The P/B ratio pits a stock's market value against 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 1.34. Over the past year, RUN's P/B has been as high as 1.42 and as low as 0.66, with a median of 1.10.

These are only a few of the key metrics included in Sunrun's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, RUN looks like an impressive value stock at the moment.


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