Yahoo Finance Should Value Investors Buy Eni (E) Stock?
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.
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 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 of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 6.71, while its industry has an average P/E of 9.38. Over the last 12 months, E's Forward P/E has been as high as 7.53 and as low as 4.44, with a median of 6.74.
E is also sporting a PEG ratio of 1.06. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. E's PEG compares to its industry's average PEG of 2.10. Over the last 12 months, E's PEG has been as high as 1.13 and as low as 1.06, with a median of 1.10.
We should also highlight that E has a P/B ratio of 0.89. The P/B ratio pits a stock's market value against 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 1.49. E's P/B has been as high as 0.99 and as low as 0.80, with a median of 0.91, 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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. E has a P/S ratio of 0.54. This compares to its industry's average P/S of 0.65.
Finally, investors will want to recognize that E has a P/CF ratio of 4.26. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. E's current P/CF looks attractive when compared to its industry's average P/CF of 5.35. Within the past 12 months, E's P/CF has been as high as 4.55 and as low as 2.16, with a median of 3.82.
These are just a handful of the figures considered in Eni'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 is an impressive value stock right now.
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Eni SpA (E) : Free Stock Analysis Report
