Is NuStar Energy (NS) a Great Value Stock Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
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 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.
One company value investors might notice is NuStar Energy (NS). NS is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. NS has a P/S ratio of 0.97. This compares to its industry's average P/S of 1.12.
Finally, investors should note that NS has a P/CF ratio of 5.64. 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. NS's P/CF compares to its industry's average P/CF of 7.92. Within the past 12 months, NS's P/CF has been as high as 6.55 and as low as 4.99, with a median of 5.59.
Investors could also keep in mind Plains All American Pipeline (PAA), an Oil and Gas - Production Pipeline - MLB stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Plains All American Pipeline sports a P/B ratio of 0.73 as well; this compares to its industry's price-to-book ratio of 1.78. In the past 52 weeks, PAA's P/B has been as high as 1.15, as low as 0.63, with a median of 0.78.
These are just a handful of the figures considered in NuStar Energy and Plains All American Pipeline'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 NS and PAA is an impressive value stock right now.
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NuStar Energy L.P. (NS) : Free Stock Analysis Report
Plains All American Pipeline, L.P. (PAA) : Free Stock Analysis Report
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