Yahoo Finance Are Investors Undervaluing E.ON (EONGY) Right Now?
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.
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.
One company value investors might notice is E.ON (EONGY). EONGY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 11.77. This compares to its industry's average Forward P/E of 13.73. Over the past 52 weeks, EONGY's Forward P/E has been as high as 13.85 and as low as 7.81, with a median of 10.54.
EONGY is also sporting a PEG ratio of 1.25. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. EONGY's PEG compares to its industry's average PEG of 2.03. Within the past year, EONGY's PEG has been as high as 1.35 and as low as 0.94, with a median of 1.14.
We should also highlight that EONGY has a P/B ratio of 1.24. 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 stock's P/B looks attractive against its industry's average P/B of 2.04. Within the past 52 weeks, EONGY's P/B has been as high as 1.40 and as low as 0.74, with a median of 1.03.
Finally, we should also recognize that EONGY has a P/CF ratio of 6.56. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. EONGY's P/CF compares to its industry's average P/CF of 10.99. EONGY's P/CF has been as high as 7.39 and as low as 2.09, with a median of 2.78, all within the past year.
If you're looking for another solid Utility - Electric Power value stock, take a look at OGE Energy (OGE). OGE is a # 2 (Buy) stock with a Value score of A.
Shares of OGE Energy currently holds a Forward P/E ratio of 16.99, and its PEG ratio is 0.95. In comparison, its industry sports average P/E and PEG ratios of 13.73 and 2.03.
OGE's Forward P/E has been as high as 20.41 and as low as 16.21, with a median of 18.58. During the same time period, its PEG ratio has been as high as 5.88, as low as 0.95, with a median of 3.87.
OGE Energy also has a P/B ratio of 1.60 compared to its industry's price-to-book ratio of 2.04. Over the past year, its P/B ratio has been as high as 2.01, as low as 1.52, with a median of 1.77.
These are only a few of the key metrics included in E.ON and OGE Energy strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, EONGY and OGE look like an impressive value stock at the moment.
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E.ON SE (EONGY) : Free Stock Analysis Report
OGE Energy Corporation (OGE) : Free Stock Analysis Report
