Should Value Investors Buy Northwest Natural (NWN) Stock?

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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.Northwest Natural (NWN) is a stock many investors are watching right now. NWN is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 14.11, while its industry has an average P/E of 15.29. Over the past 52 weeks, NWN's Forward P/E has been as high as 17.00 and as low as 13.15, with a median of 14.27. We should also highlight that NWN has a P/B ratio of 1.16. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. NWN's current P/B looks attractive when compared to its industry's average P/B of 1.26. NWN's P/B has been as high as 1.25 and as low as 1.08, with a median of 1.15, over the past year.Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. NWN has a P/S ratio of 1.39. This compares to its industry's average P/S of 1.61.Finally, our model also underscores that NWN has a P/CF ratio of 6.19. 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. NWN's P/CF compares to its industry's average P/CF of 8.79. Over the past year, NWN's P/CF has been as high as 7.39 and as low as 5.84, with a median of 6.83.Value investors will likely look at more than just these metrics, but the above data helps show that Northwest Natural is likely undervalued currently. And when considering the strength of its earnings outlook, NWN sticks out as one of the market's strongest value stocks.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They includeStock #1: A Disruptive Force with Notable Growth and ResilienceStock #2: Bullish Signs Signaling to Buy the DipStock #3: One of the Most Compelling Investments in the MarketStock #4: Leader In a Red-Hot Industry Poised for GrowthStock #5: Modern Omni-Channel Platform Coiled to SpringMost of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. While not all picks can be winners, previous recommendations have soared +171%, +209% and +232%.Download Atomic Opportunity: Nuclear Energy's Comeback free today.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Northwest Natural Gas Company (NWN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks