Yahoo Finance Is Companhia Paranaense de Energia COPEL (ELP) 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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
One company to watch right now is Companhia Paranaense de Energia COPEL (ELP). ELP is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 10.52, while its industry has an average P/E of 15.90. Over the past year, ELP's Forward P/E has been as high as 12.09 and as low as 3.37, with a median of 7.97.
Another valuation metric that we should highlight is ELP's P/B ratio of 0.88. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2.62. ELP's P/B has been as high as 1.03 and as low as 0.66, with a median of 0.83, over the past year.
If you're looking for another solid Utility - Electric Power value stock, take a look at GDF Suez (ENGIY). ENGIY is a # 1 (Strong Buy) stock with a Value score of A.
Shares of GDF Suez are currently trading at a forward earnings multiple of 6.01 and a PEG ratio of 1.62 compared to its industry's P/E and PEG ratios of 15.90 and 2.22, respectively.
Over the last 12 months, ENGIY's P/E has been as high as 7.10, as low as 5.54, with a median of 6.25, and its PEG ratio has been as high as 1.64, as low as 0.84, with a median of 0.99.
Furthermore, GDF Suez holds a P/B ratio of 0.65 and its industry's price-to-book ratio is 2.62. ENGIY's P/B has been as high as 0.83, as low as 0.52, with a median of 0.73 over the past 12 months.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Companhia Paranaense de Energia COPEL and GDF Suez are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ELP and ENGIY feels like a great value stock at the moment.
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Companhia Paranaense de Energia COPEL (ELP) : Free Stock Analysis Report
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