Is Clean Energy Fuels (CLNE) Stock Undervalued Right Now?
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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 Clean Energy Fuels (CLNE). CLNE is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
We should also highlight that CLNE has a P/B ratio of 0.84. 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. CLNE's current P/B looks attractive when compared to its industry's average P/B of 1.86. CLNE's P/B has been as high as 1.37 and as low as 0.63, with a median of 0.89, over the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CLNE has a P/S ratio of 1.32. This compares to its industry's average P/S of 1.88.
Value investors will likely look at more than just these metrics, but the above data helps show that Clean Energy Fuels is likely undervalued currently. And when considering the strength of its earnings outlook, CLNE sticks out at as one of the market's strongest value stocks.
Click to get this free report
Clean Energy Fuels Corp. (CLNE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.