Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.
Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.
Why Investors Should Pay Attention to This Value Stock
Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock’s true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most discounted stocks.
Enterprise Products Partners (EPD)
Headquartered in Houston, TX, Enterprise Products Partners is among the leading midstream energy players in North America. With its wide base of midstream infrastructure assets, the partnership provides services to producers and consumers of commodities that include natural gas, natural gas liquids (NGL), oil and refined petrochemical products. It was formed in April 1998.
EPD is a Zacks Rank #3 (Hold) stock, with a Value Style Score of B and VGM Score of B. Shares are currently trading at a forward P/E of 10.7X for the current fiscal year compared to the Oil and Gas – Production Pipeline – MLB industry’s P/E of 12.5X. Additionally, EPD has a PEG Ratio of 1.4 and a Price/Cash Flow ratio of 8X. Value investors should also note EPD’s Price/Sales ratio of 1.2X.
A company’s earnings performance is important for value investors as well. For fiscal 2024, two analysts revised their earnings estimate higher in the last 60 days for EPD, while the Zacks Consensus Estimate has increased $0.02 to $2.72 per share. EPD also holds an average earnings surprise of 1%.
With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding EPD to their portfolios.
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Enterprise Products Partners L.P. (EPD) : Free Stock Analysis Report
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