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PROPERTY:

9 luxury homes to consider if money is no object

Ever thought about what a multimillion pound budget would buy you?

Is GDF Suez (ENGIY) Stock Undervalued Right Now?

Zacks Equity Research
·2-min read

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.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One stock to keep an eye on is GDF Suez (ENGIY). ENGIY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 6.53, which compares to its industry's average of 15.29. Over the past 52 weeks, ENGIY's Forward P/E has been as high as 7.10 and as low as 5.54, with a median of 6.29.

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Investors should also note that ENGIY holds a PEG ratio of 0.99. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ENGIY's PEG compares to its industry's average PEG of 2.14. Within the past year, ENGIY's PEG has been as high as 1.07 and as low as 0.84, with a median of 0.95.

Another great Utility - Electric Power stock you could consider is TransAlta (TAC), which is a # 2 (Buy) stock with a Value Score of A.

Furthermore, TransAlta holds a P/B ratio of 2.31 and its industry's price-to-book ratio is 2.42. TAC's P/B has been as high as 2.41, as low as 1.39, with a median of 2.17 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 GDF Suez and TransAlta are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ENGIY and TAC feels like a great value stock at the moment.


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GDF Suez SA (ENGIY) : Free Stock Analysis Report
 
TransAlta Corporation (TAC) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.