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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
Plains Group (PAGP) is a stock many investors are watching right now. PAGP is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 12.22, which compares to its industry's average of 18.49. Over the past year, PAGP's Forward P/E has been as high as 18.70 and as low as 10.35, with a median of 12.42.
Finally, investors will want to recognize that PAGP has a P/CF ratio of 3.56. 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. This stock's P/CF looks attractive against its industry's average P/CF of 11.10. Over the past year, PAGP's P/CF has been as high as 3.81 and as low as 2.57, with a median of 3.03.
These are just a handful of the figures considered in Plains Group'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 PAGP is an impressive value stock right now.
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Plains Group Holdings, L.P. (PAGP) : Free Stock Analysis Report
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