Should Value Investors Buy Enerplus (ERF) Stock?
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 Enerplus (ERF). ERF is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 6.65 right now. For comparison, its industry sports an average P/E of 9.09. Over the past 52 weeks, ERF's Forward P/E has been as high as 8.01 and as low as 4.79, with a median of 6.14.
Finally, investors will want to recognize that ERF has a P/CF ratio of 3.20. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. ERF's current P/CF looks attractive when compared to its industry's average P/CF of 3.99. ERF's P/CF has been as high as 4.33 and as low as 2.28, with a median of 3.08, all within the past year.
Investors could also keep in mind Ovintiv (OVV), an Oil and Gas - Exploration and Production - Canadian stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Shares of Ovintiv are currently trading at a forward earnings multiple of 6.32 and a PEG ratio of 0.48 compared to its industry's P/E and PEG ratios of 9.09 and 2.59, respectively.
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Enerplus Corporation (ERF) : Free Stock Analysis Report
Ovintiv Inc. (OVV) : Free Stock Analysis Report
