Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is Plains Group (PAGP). PAGP is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 12.85 right now. For comparison, its industry sports an average P/E of 18.46. Over the past year, PAGP's Forward P/E has been as high as 18.70 and as low as 10.11, with a median of 12.25.
Finally, investors should note that PAGP has a P/CF ratio of 3.50. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 11.09. Over the past year, PAGP's P/CF has been as high as 3.58 and as low as 2.50, with a median of 3.01.
These are only a few of the key metrics included in Plains Group's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, PAGP looks like an impressive value stock at the moment.
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Plains Group Holdings, L.P. (PAGP) : Free Stock Analysis Report
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