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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.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 stock to keep an eye on is E.ON (EONGY). EONGY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 14.16. This compares to its industry's average Forward P/E of 14.20. Over the past 52 weeks, EONGY's Forward P/E has been as high as 14.24 and as low as 9.27, with a median of 11.51.
Another valuation metric that we should highlight is EONGY's P/B ratio of 1.65. 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 2.25. Over the past 12 months, EONGY's P/B has been as high as 1.68 and as low as 1.08, with a median of 1.49.
Finally, investors should note that EONGY has a P/CF ratio of 4.51. 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. EONGY's current P/CF looks attractive when compared to its industry's average P/CF of 10.49. Over the past 52 weeks, EONGY's P/CF has been as high as 6.45 and as low as 2.95, with a median of 5.36.
These are just a handful of the figures considered in E.ON'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 EONGY is an impressive value stock right now.
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