Is NRG Yield (CWEN) 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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
NRG Yield (CWEN) is a stock many investors are watching right now. CWEN is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 13.49, while its industry has an average P/E of 15.92. Over the past 52 weeks, CWEN's Forward P/E has been as high as 29.82 and as low as 7.40, with a median of 12.95.
We also note that CWEN holds a PEG ratio of 1.35. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CWEN's industry currently sports an average PEG of 1.67. Over the past 52 weeks, CWEN's PEG has been as high as 2.98 and as low as 0.33, with a median of 1.30.
These figures are just a handful of the metrics value investors tend to look at, but they help show that NRG Yield is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CWEN feels like a great value stock at the moment.
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