Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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 (E) is a stock many investors are watching right now. E is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 10.37, while its industry has an average P/E of 12.25. Over the last 12 months, E's Forward P/E has been as high as 10.97 and as low as 6.79, with a median of 7.95.
Investors should also recognize that E has a P/B ratio of 0.97. 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 1.79. Over the past 12 months, E's P/B has been as high as 1.00 and as low as 0.70, with a median of 0.85.
Finally, investors should note that E has a P/CF ratio of 4.98. 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. E's current P/CF looks attractive when compared to its industry's average P/CF of 6.18. E's P/CF has been as high as 5.13 and as low as 3.64, with a median of 4.27, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Eni is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, E feels like a great value stock at the moment.
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Eni SpA (E): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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