Why ONE Gas (OGS) is a Top Value Stock for the Long-Term
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.
Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.
Why Investors Should Pay Attention to This Value Stock
Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most discounted stocks.
ONE Gas (OGS)
Headquartered in Tulsa, OK, ONE Gas, Inc. is a 100% regulated natural gas distribution utility. The company provides natural gas distribution services to more than 2.3 million customers in Oklahoma, Kansas and Texas. The company has been registering an increase in average customer count in these three states since 2014. As of Dec 31, 2022, it operated 44,500 miles of natural gas distribution and transmission pipelines.
OGS sits at a Zacks Rank #3 (Hold), holds a Value Style Score of B, and has a VGM Score of A. Compared to the Utility - Gas Distribution industry's P/E of 16.3X, shares of ONE Gas are trading at a forward P/E of 18.7X. OGS also has a PEG Ratio of 3.7, a Price/Cash Flow ratio of 9.3X, and a Price/Sales ratio of 1.6X.
Value investors don't just pay attention to a company's valuation ratios; positive earnings play a crucial role, too. One analyst revised their earnings estimate upwards in the last 60 days for fiscal 2023. The Zacks Consensus Estimate has increased $0.00 to $4.13 per share. OGS has an average earnings surprise of 1.1%.
With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding OGS to their portfolios.
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ONE Gas, Inc. (OGS) : Free Stock Analysis Report
