Yahoo Finance Are Investors Undervaluing Eni (E) Right Now?
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 Eni (E). E is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 4.68, which compares to its industry's average of 7.87. Over the last 12 months, E's Forward P/E has been as high as 5.89 and as low as 3.12, with a median of 4.55.
E is also sporting a PEG ratio of 0.44. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. E's industry has an average PEG of 0.65 right now. E's PEG has been as high as 0.49 and as low as 0.30, with a median of 0.34, all within the past year.
Investors should also recognize that E has a P/B ratio of 0.84. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.26. Over the past year, E's P/B has been as high as 1.06 and as low as 0.65, with a median of 0.86.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. 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 0.38. This compares to its industry's average P/S of 0.52.
Finally, our model also underscores that E has a P/CF ratio of 2.27. 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 3.69. Over the past year, E's P/CF has been as high as 3.04 and as low as 1.44, with a median of 2.03.
These are only a few of the key metrics included in Eni'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, E looks like an impressive value stock at the moment.
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Eni SpA (E) : Free Stock Analysis Report
