Are Investors Undervaluing Eni (E) Right Now?

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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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.

Eni (E) is a stock many investors are watching right now. E is currently holding a Zacks Rank #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 10.33. This compares to its industry's average Forward P/E of 12.56. E's Forward P/E has been as high as 10.97 and as low as 6.79, with a median of 8.05, all within the past year.

Investors should also recognize that E has a P/B ratio of 0.97. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. E's current P/B looks attractive when compared to its industry's average P/B of 1.44. E's P/B has been as high as 1.00 and as low as 0.70, with a median of 0.85, over the past year.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. E has a P/S ratio of 0.65. This compares to its industry's average P/S of 0.77.

Finally, our model also underscores that E has a P/CF ratio of 4.96. 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. This stock's P/CF looks attractive against its industry's average P/CF of 6.54. E's P/CF has been as high as 5.13 and as low as 3.64, with a median of 4.30, all within the past year.

Another great Oil and Gas - Integrated - International stock you could consider is Repsol (REPYY), which is a Zacks Rank of #2 (Buy) stock with a Value Score of A.

Repsol is currently trading with a Forward P/E ratio of 5.56 while its PEG ratio sits at 4.83. Both of the company's metrics compare favorably to its industry's average P/E of 12.56 and average PEG ratio of 1.33.

REPYY's price-to-earnings ratio has been as high as 6.17 and as low as 4.00, with a median of 5.01, while its PEG ratio has been as high as 5.37 and as low as 1.21, with a median of 4.31, all within the past year.

Repsol also has a P/B ratio of 0.66 compared to its industry's price-to-book ratio of 1.44. Over the past year, its P/B ratio has been as high as 0.68, as low as 0.41, with a median of 0.50.

These are just a handful of the figures considered in Eni and Repsol's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that E and REPYY is an impressive value stock right now.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research