Is E.ON (EONGY) Stock Undervalued 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.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is E.ON (EONGY). EONGY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 12.23. This compares to its industry's average Forward P/E of 14.86. Over the past year, EONGY's Forward P/E has been as high as 13.46 and as low as 7.81, with a median of 10.39.
We also note that EONGY holds a PEG ratio of 1.25. 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. EONGY's industry currently sports an average PEG of 2.22. Over the last 12 months, EONGY's PEG has been as high as 1.62 and as low as 0.94, with a median of 1.24.
Another notable valuation metric for EONGY is its P/B ratio of 1.13. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. EONGY's current P/B looks attractive when compared to its industry's average P/B of 2.11. EONGY's P/B has been as high as 1.73 and as low as 0.73, with a median of 1.01, over the past year.
Finally, investors will want to recognize that EONGY has a P/CF ratio of 3.24. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. EONGY's current P/CF looks attractive when compared to its industry's average P/CF of 12.48. Within the past 12 months, EONGY's P/CF has been as high as 3.60 and as low as 2.09, with a median of 2.73.
Another great Utility - Electric Power stock you could consider is NRG Energy (NRG), which is a # 1 (Strong Buy) stock with a Value Score of A.
Shares of NRG Energy currently holds a Forward P/E ratio of 6.72, and its PEG ratio is 0.56. In comparison, its industry sports average P/E and PEG ratios of 14.86 and 2.22.
NRG's price-to-earnings ratio has been as high as 13.06 and as low as 2.87, with a median of 8.56, while its PEG ratio has been as high as 1.24 and as low as 0.13, with a median of 0.69, all within the past year.
Additionally, NRG Energy has a P/B ratio of 1.50 while its industry's price-to-book ratio sits at 2.11. For NRG, this valuation metric has been as high as 2.78, as low as 1.39, with a median of 1.89 over the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that E.ON and NRG Energy are likely undervalued currently. And when considering the strength of its earnings outlook, EONGY and NRG sticks out as one of the market's strongest value stocks.
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E.ON SE (EONGY) : Free Stock Analysis Report
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