Here's Why Spire (SR) is a Strong Value Stock

Zacks
21 Jan

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.

Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.

Why Investors Should Pay Attention to This Value Stock

Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most discounted stocks.

Spire (SR)

Spire Inc. is a natural gas company efficiently serving more than 1.7 million customers in the United States. It was founded in 2000 and is headquartered in St. Louis, MO. The company continues to expand business organically via making systematic investments to expand infrastructure and advance through innovation. More than 90% of its profits come from regulated operations, which provide a clear idea about future earnings. The company operates more than 60,000 miles of pipelines. Its natural gas-related businesses include Spire Marketing, Spire STL Pipeline and Spire Storage. The company operates via segments, namely Gas Utility, Gas Marketing and Midstream.

SR sits at a Zacks Rank #2 (Buy), holds a Value Style Score of A, and has a VGM Score of B. Compared to the Utility - Gas Distribution industry's P/E of 16X, shares of Spire are trading at a forward P/E of 15.4X. SR also has a PEG Ratio of 2.7, a Price/Cash Flow ratio of 7.6X, and a Price/Sales ratio of 1.6X.

Many value investors pay close attention to a company's earnings as well. For SR, two analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.00 to $4.51 per share for 2025. Per share SR boasts an average earnings surprise of 3.8%.

SR should be on investors' short lists because of its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores.

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