Should Value Investors Buy E.ON (EONGY) Stock?
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.
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.
E.ON (EONGY) is a stock many investors are watching right now. EONGY is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 13.62 right now. For comparison, its industry sports an average P/E of 14.60. EONGY's Forward P/E has been as high as 13.63 and as low as 7.81, with a median of 10.39, all within the past year.
EONGY is also sporting a PEG ratio of 1.25. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. EONGY's PEG compares to its industry's average PEG of 2.18. Within the past year, EONGY's PEG has been as high as 1.35 and as low as 0.94, with a median of 1.16.
Another valuation metric that we should highlight is EONGY's P/B ratio of 1.37. 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 stock's P/B looks attractive against its industry's average P/B of 2.13. EONGY's P/B has been as high as 1.37 and as low as 0.74, with a median of 1.03, over the past year.
Finally, investors should note that EONGY has a P/CF ratio of 5.98. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. EONGY's P/CF compares to its industry's average P/CF of 13.75. Over the past 52 weeks, EONGY's P/CF has been as high as 5.98 and as low as 2.09, with a median of 2.73.
Investors could also keep in mind Pampa Energia (PAM), an Utility - Electric Power stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Shares of Pampa Energia currently holds a Forward P/E ratio of 6.13, and its PEG ratio is 0.09. In comparison, its industry sports average P/E and PEG ratios of 14.60 and 2.18.
Over the past year, PAM's P/E has been as high as 13.63, as low as 4.02, with a median of 5.73; its PEG ratio has been as high as 0.21, as low as 0.09, with a median of 1.16 during the same time period.
Pampa Energia sports a P/B ratio of 0.84 as well; this compares to its industry's price-to-book ratio of 2.13. In the past 52 weeks, PAM's P/B has been as high as 0.91, as low as 0.51, with a median of 0.63.
These are only a few of the key metrics included in E.ON and Pampa Energia strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, EONGY and PAM look like an impressive value stock at the moment.
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E.ON SE (EONGY) : Free Stock Analysis Report
Pampa Energia S.A. (PAM) : Free Stock Analysis Report
