Which stock is the best value option?

Alternative Energy – Other stock options are a popular choice for investors. You may have heard of NextEra Energy Partners or Bloom Energy (BE), which can be found on the NextEra Energy Partners website. What stock is more attractive for value investors? To find out, we’ll have to look closer.

Everybody has their own ways of finding great value, but we have a model that combines an impressive grade from our Style Scores system in the Value category with a strong ZacksRank. Zacks Rank favors stocks showing strong earnings forecast revision trends. Style Scores highlight companies with particular traits.

NextEra Energy Partners currently has a Zacks rank of #2 (Buy), and Bloom Energy has a Zacks rank of #3 (Hold). Stocks that have had their earnings estimates revised in the past are favored by the Zacks Rank. Investors can rest assured that NEP is on the rise. But value investors care more than this.

Investors are also interested in several tried-and-true metrics that show when a company’s share price is too low.

The Style Scores Value category identifies companies that are undervalued by looking at several key metrics. These include the P/E ratio, long-favored P/S ratio and earnings yield. We also consider cash flow per share and other fundamentals to determine a company’s fair value.

NEP has a forward PE ratio of 25.40 while BE has a forward PE ratio of 405.09. NEP also has a PEG of 2.54. This popular metric is very similar to the well-known P/E ratio. However, the PEG ratio also considers the company’s expected earnings growth rate. BE currently has a 16.20 PEG ratio.

NEP’s P/B Ratio of 0.52 is another notable valuation metric. The P/B ratio can be used to determine if a stock’s book value is greater than its market value. This is the sum of total assets less total liabilities. BE has a ratio of P/B 22.76.

These metrics, and many others, give NEP a Value Grade of B. BE, on the other hand, has a Value Grade of F.

NEP has a positive outlook on its earnings, which is why it stands out in Zacks Rank’s Zacks Rank model. Based on these valuation metrics, NEP appears to be the best value option at the moment.

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NextEra Energy Partners, LP (NEP) : Free Stock Analysis Report

Bloom Energy Corporation (BE) : Free Stock Analysis Report

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