Replies to post #6704 on NGL Energy Partners LP (NGL)

[swanlinbar]

Are Investors Undervaluing NGL Energy Partners LP (NGL) Right Now?
8:10 am ET May 29, 2019 (Zacks) Print
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, 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.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One stock to keep an eye on is NGL Energy Partners LP (NGL). NGL is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value.

We should also highlight that NGL has a P/B ratio of 0.86. The P/B ratio is used to compare a stock's market value with 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 2.24. NGL's P/B has been as high as 0.88 and as low as 0.50, with a median of 0.76, over the past year.

Finally, investors will want to recognize that NGL has a P/CF ratio of 2.87. 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. This stock's P/CF looks attractive against its industry's average P/CF of 8.79. Over the past 52 weeks, NGL's P/CF has been as high as 19.71 and as low as 1.83, with a median of 2.72.

These are just a handful of the figures considered in NGL Energy Partners LP'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 NGL is an impressive value stock right now.

[jugs]

Interesting development:

What do you think their rank change is based on?

As I've said numerous times here, I have never trusted Zacks. Still, I'm wondering how others I respect here might be viewing this latest NGL-based development?