Why UGI (UGI) is a Top Value Stock for the Long-Term
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.
While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.
Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and discounted stocks.
UGI Corporation is a holding company, which distributes, stores, transports and markets energy products and related services through its subsidiaries. It is a domestic and international retail distributor of propane and butane liquefied petroleum gases (LPG); a provider of natural gas and electric service via regulated local distribution utilities; a generator of electricity and a regional marketer of energy commodities. The company was founded in 1882. UGI Corporation has 10,000 employees and serves more than 2.6 million customers.
UGI sits at a Zacks Rank #2 (Buy), holds a Value Style Score of A, and has a VGM Score of A. Compared to the Utility - Gas Distribution industry's P/E of 16.7X, shares of UGI are trading at a forward P/E of 11.6X. UGI also has a PEG Ratio of 1.7, a Price/Cash Flow ratio of 5.6X, and a Price/Sales ratio of 1.1X.
Many value investors pay close attention to a company's earnings as well. For UGI, one analyst revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.02 to $3.13 per share for 2025. UGI boasts an average earnings surprise of 75.7%.
UGI should be on investors' short list because of its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores.
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This article originally published on Zacks Investment Research (zacks.com).
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