U.S. markets open in 7 hours 4 minutes

Why Plains GP Holdings (PAGP) is Such a Great Value Stock Pick Right Now

Zacks Equity Research

Value investing is always a very popular strategy, and for good reason. After all, who doesn’t want to find stocks that have low PEs, solid outlooks, and decent dividends?

Fortunately for investors looking for this combination, we have identified a strong candidate which may be an impressive value; Plains GP Holdings, L.P. PAGP.

Plains GP Holdings in Focus

PAGP may be an interesting play thanks to its forward PE of 12.5, its P/S ratio of 0.1, and its decent dividend yield of 5.7%. These factors suggest that Plains GP Holdings is a pretty good value pick, as investors have to pay a relatively low level for each dollar of earnings, and that PAGP has decent revenue metrics to back up its earnings.

Plains Group Holdings, L.P. PE Ratio (TTM)

Plains Group Holdings, L.P. PE Ratio (TTM)

Plains Group Holdings, L.P. pe-ratio-ttm | Plains Group Holdings, L.P. Quote

But before you think that Plains GP Holdings is just a pure value play, it is important to note that it has been seeing solid activity on the earnings estimate front as well. For current year earnings, the consensus has gone up by 40.7% in the past 60 days, thanks to two upward revisions in the past two months compared to one lower.

This estimate strength is actually enough to push PAGP to a Zacks Rank #1 (Strong Buy), suggesting it is poised to outperform. You can see the complete list of today’s Zacks #1 Rank stocks here.

So really, Plains GP Holdings is looking great from a number of angles thanks to its PE below 20, a P/S ratio below one, and a strong Zacks Rank, meaning that this company could be a great choice for value investors at this time.

Looking for Stocks with Skyrocketing Upside?

Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.

Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.

See the pot trades we're targeting>>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Plains Group Holdings, L.P. (PAGP) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research