Advertisement
Canada markets close in 1 hour 48 minutes

  • S&P/TSX

    21,800.90
    +92.46 (+0.43%)
     

  • S&P 500

    4,981.50
    -29.62 (-0.59%)
     

  • DOW

    37,989.61
    +214.23 (+0.57%)
     

  • CAD/USD

    0.7275
    +0.0012 (+0.16%)
     

  • CRUDE OIL

    83.30
    +0.57 (+0.69%)
     

  • Bitcoin CAD

    88,568.92
    +2,461.01 (+2.86%)
     

  • CMC Crypto 200

    1,390.08
    +77.46 (+5.90%)
     

  • GOLD FUTURES

    2,408.30
    +10.30 (+0.43%)
     

  • RUSSELL 2000

    1,946.96
    +4.00 (+0.21%)
     

  • 10-Yr Bond

    4.6270
    -0.0200 (-0.43%)
     

  • NASDAQ

    15,357.36
    -244.14 (-1.56%)
     

  • VOLATILITY

    18.48
    +0.48 (+2.67%)
     

  • FTSE

    7,895.85
    +18.80 (+0.24%)
     

  • NIKKEI 225

    37,068.35
    -1,011.35 (-2.66%)
     

  • CAD/EUR

    0.6826
    +0.0005 (+0.07%)
     
MARKETS LIVE BLOG:

S&P 500 SLIPS BELOW 5,000; NASDAQ SINKS ON NETFLIX DRAG

Fed's Goolsbee says 'It makes sense to wait' before cutting rates

Is Plains GP Holdings (PAGP) Stock Undervalued Right Now?

Zacks Equity Research

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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 value investors might notice is Plains GP Holdings (PAGP). PAGP 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 9.42, which compares to its industry's average of 16.23. Over the last 12 months, PAGP's Forward P/E has been as high as 16.14 and as low as 9.42, with a median of 13.70.

ADVERTISEMENT

Finally, investors should note that PAGP has a P/CF ratio of 3.47. 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. PAGP's P/CF compares to its industry's average P/CF of 10.01. Over the past 52 weeks, PAGP's P/CF has been as high as 4.73 and as low as -35.07, with a median of 3.87.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Plains GP Holdings is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, PAGP feels like a great value stock at the moment.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Plains Group Holdings, L.P. (PAGP) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research