Chicago, IL – March 5, 2024 – Stocks in this week’s article are Energy Transfer LP ET, Transportadora de Gas del Sur S.A. TGS, Brookfield Infrastructure Partners L.P. BIP, First Horizon Corp. FHN and Empire State Realty Trust, Inc. ESRT.
Tap These 5 Bargain Stocks with Impressive EV to EBITDA Ratios
Investors are typically fixated on the price-to-earnings (P/E) strategy while seeking stocks trading at attractive prices. This straightforward, easy-to-calculate ratio is the most preferred among all the valuation metrics in the investment toolkit for working out the fair market value of a stock. But even this ubiquitously used valuation metric is not without its pitfalls.
While P/E enjoys great popularity among value investors, a less-used and more complicated metric called EV-to-EBITDA is sometimes viewed as a better alternative. EV-to-EBITDA gives the true picture of a company’s valuation and earnings potential. It has a more comprehensive approach to valuation.
Energy Transfer LP, Transportadora de Gas del Sur S.A., Brookfield Infrastructure Partners L.P., First Horizon Corp. and Empire State Realty Trust, Inc. are some stocks with attractive EV-to-EBITDA ratios.
Here are our five picks out of the 12 stocks that passed the screen:
Energy Transfer owns and operates one of the biggest portfolios of energy assets in the United States. This Zacks Rank #1 stock has a Value Score of A.
Energy Transfer has an expected year-over-year earnings growth rate of 32.1% for 2024. The Zacks Consensus Estimate for ET’s 2024 earnings has been revised 24.1% upward over the last 60 days.
Transportadorais a leader in the transportation of natural gas in Argentina. This Zacks Rank #1 stock has a Value Score of B. You can see the complete list of today’s Zacks #1 Rank stocks here.
Transportadora has an expected year-over-year earnings growth rate of 83.3% for 2024. The Zacks Consensus Estimate for TGS’s 2024 earnings has been revised 8.8% upward over the last 60 days.
Brookfield Infrastructure owns and operates high-quality, long-life assets in the utilities, transport, midstream and data businesses in North and South America, Asia Pacific and Europe. This Zacks Rank #2 stock has a Value Score of A.
Brookfield Infrastructure has an expected year-over-year earnings growth rate of 12.5% for 2024. The Zacks Consensus Estimate for BIP’s 2024 earnings has been revised 0.6% upward over the last 60 days.
First Horizon provides diversified financial services, mainly via its principal subsidiary First Horizon Bank. This Zacks Rank #2 stock has a Value Score of B.
The consensus estimate for First Horizon’s 2024 earnings has been revised 4.4% upward over the last 60 days. FHN beat the Zacks Consensus Estimate for earnings in three of the last four quarters while matching the same on the other occasion. It has a trailing four-quarter earnings surprise of around 3.5%, on average.
Empire State Realty Trust is a leading real estate investment trust. This Zacks Rank #2 stock has a Value Score of B.
Empire State Realty Trust has an expected year-over-year earnings growth rate of 1.1% for 2024. The Zacks Consensus Estimate for ESRT’s 2024 earnings has been revised 3.3% upward over the last 60 days.
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