Are Investors Undervaluing Empresa Distribuidora Y Comercializadora Norte S.A. Edenor (EDN) Right Now?

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

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.

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 company value investors might notice is Empresa Distribuidora Y Comercializadora Norte S.A. Edenor (EDN). EDN is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.

Another notable valuation metric for EDN is its P/B ratio of 0.90. 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. This stock's P/B looks solid versus its industry's average P/B of 2.27. EDN's P/B has been as high as 1.81 and as low as 0.66, with a median of 0.92, over the past year.

Finally, our model also underscores that EDN has a P/CF ratio of 3.14. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 10.53. Within the past 12 months, EDN's P/CF has been as high as 4.49 and as low as 0.94, with a median of 1.82.

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

Edison International is trading at a forward earnings multiple of 9.74 at the moment, with a PEG ratio of 1.15. This compares to its industry's average P/E of 14.31 and average PEG ratio of 1.82.

EIX's Forward P/E has been as high as 16.23 and as low as 8.63, with a median of 14.22. During the same time period, its PEG ratio has been as high as 1.91, as low as 1.02, with a median of 1.62.

Edison International also has a P/B ratio of 1.38 compared to its industry's price-to-book ratio of 2.27. Over the past year, its P/B ratio has been as high as 2.09, as low as 1.20, with a median of 1.81.

These are only a few of the key metrics included in Empresa Distribuidora Y Comercializadora Norte S.A. Edenor and Edison International strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, EDN and EIX look like an impressive value stock at the moment.

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