Is Eni SpA (E) a Great Value Stock Right Now?
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.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
Eni SpA (E) is a stock many investors are watching right now. E is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
We also note that E holds a PEG ratio of 0.85. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. E's industry currently sports an average PEG of 1.10. Over the last 12 months, E's PEG has been as high as 4.43 and as low as 0.60, with a median of 0.82.
Another valuation metric that we should highlight is E's P/B ratio of 1.09. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.35. Over the past year, E's P/B has been as high as 1.25 and as low as 1.06, with a median of 1.13.
Finally, we should also recognize that E has a P/CF ratio of 4.61. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 6.57. Within the past 12 months, E's P/CF has been as high as 5.74 and as low as 4.53, with a median of 5.17.
These are only a few of the key metrics included in Eni SpA's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, E looks like an impressive value stock at the moment.
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