Yahoo Finance Should Value Investors Buy Veolia Environnement (VEOEY) Stock?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is Veolia Environnement (VEOEY). VEOEY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 7.22 right now. For comparison, its industry sports an average P/E of 18.95. Over the last 12 months, VEOEY's Forward P/E has been as high as 9.18 and as low as 5.99, with a median of 7.29.
VEOEY is also sporting a PEG ratio of 0.65. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. VEOEY's PEG compares to its industry's average PEG of 1.27. Within the past year, VEOEY's PEG has been as high as 0.93 and as low as 0.47, with a median of 0.76.
Another notable valuation metric for VEOEY is its P/B ratio of 1.57. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.85. Over the past 12 months, VEOEY's P/B has been as high as 1.57 and as low as 1.22, with a median of 1.45.
These are just a handful of the figures considered in Veolia Environnement'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 VEOEY is an impressive value stock right now.
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Veolia Environnement SA (VEOEY) : Free Stock Analysis Report
