Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Noble Midstream Partners (NBLX). NBLX 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 6.27, while its industry has an average P/E of 18.76. Over the past 52 weeks, NBLX's Forward P/E has been as high as 13.40 and as low as 1.48, with a median of 5.98.
We also note that NBLX holds a PEG ratio of 0.93. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. NBLX's industry has an average PEG of 1.60 right now. Within the past year, NBLX's PEG has been as high as 0.93 and as low as 0.32, with a median of 0.45.
Another valuation metric that we should highlight is NBLX's P/B ratio of 0.70. The P/B is a method of comparing a stock's market value to 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 1.89. Over the past 12 months, NBLX's P/B has been as high as 2.11 and as low as 0.23, with a median of 0.70.
Finally, our model also underscores that NBLX has a P/CF ratio of 3.42. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. NBLX's current P/CF looks attractive when compared to its industry's average P/CF of 5.44. NBLX's P/CF has been as high as 6.34 and as low as 0.68, with a median of 3.99, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Noble Midstream Partners is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, NBLX feels like a great value stock at the moment.
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