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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One stock to keep an eye on is Energy Transfer (ET). ET is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 12.61, which compares to its industry's average of 12.96. Over the last 12 months, ET's Forward P/E has been as high as 14.92 and as low as 9.59, with a median of 11.78.

We also note that ET holds a PEG ratio of 0.59. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ET's industry has an average PEG of 0.83 right now. Over the past 52 weeks, ET's PEG has been as high as 0.64 and as low as 0.37, with a median of 0.50.

Another valuation metric that we should highlight is ET's P/B ratio of 1.47. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. ET's current P/B looks attractive when compared to its industry's average P/B of 2.08. ET's P/B has been as high as 1.71 and as low as 1.25, with a median of 1.39, over the past year.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. ET has a P/S ratio of 0.74. This compares to its industry's average P/S of 1.19.

Finally, investors should note that ET has a P/CF ratio of 6.35. 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. ET's current P/CF looks attractive when compared to its industry's average P/CF of 8.65. Within the past 12 months, ET's P/CF has been as high as 7.57 and as low as 5.47, with a median of 6.36.

Story Continues

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

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Energy Transfer LP (ET):Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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