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Why This 1 Value Stock Could Be a Great Addition to Your Portfolio

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.

Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.

Why Investors Should Pay Attention to This Value Stock

Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and discounted stocks.

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TotalEnergies SE Sponsored ADR (TTE)

France-based TotalEnergies SE is among the top five publicly traded global integrated oil and gas companies based on production volumes, proved reserves and market capitalization. The company has operations in more than 130 countries across five continents. The company was founded in 1924. The company has changed its name from TOTAL SE to TotalEnergies SE, which better reflects its transition toward a broad energy company. The new trading symbol of the company is TTE.

TTE is a Zacks Rank #1 (Strong Buy) stock, with a Value Style Score of A and VGM Score of A. Shares are currently trading at a forward P/E of 3.5X for the current fiscal year compared to the Oil and Gas - Refining and Marketing industry's P/E of 5.5X. Additionally, TTE has a PEG Ratio of 0.5 and a Price/Cash Flow ratio of 4.2X. Value investors should also note TTE's Price/Sales ratio of 0.5X.

Value investors don't just pay attention to a company's valuation ratios; positive earnings play a crucial role, too. Four analysts revised their earnings estimate upwards in the last 60 days for fiscal 2022. The Zacks Consensus Estimate has increased $0.83 to $14.66 per share. TTE has an average earnings surprise of 14.6%.

With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding TTE to their portfolios.


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Zacks Investment Research