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Is National Fuel Gas (NFG) a Great Value Stock Right Now?

Zacks Equity Research
·3 min read

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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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.

National Fuel Gas (NFG) is a stock many investors are watching right now. NFG is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 13.86 right now. For comparison, its industry sports an average P/E of 21.88. Over the past 52 weeks, NFG's Forward P/E has been as high as 16.75 and as low as 11.97, with a median of 14.64.

Investors should also recognize that NFG has a P/B ratio of 1.65. 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 2.64. NFG's P/B has been as high as 2.40 and as low as 1.31, with a median of 1.85, over the past year.

Finally, investors will want to recognize that NFG has a P/CF ratio of 8.81. 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 stock's P/CF looks attractive against its industry's average P/CF of 12.17. Within the past 12 months, NFG's P/CF has been as high as 9.67 and as low as 5.01, with a median of 7.10.

These figures are just a handful of the metrics value investors tend to look at, but they help show that National Fuel Gas is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, NFG feels like a great value stock at the moment.


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