Why Avangrid (AGR) is a Top Value Stock for the Long-Term

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.

Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.

Why Investors Should Pay Attention to This Value Stock

Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks.

Avangrid (AGR)

The merger of Iberdrola U.S.A with The UIL Holdings Corporation in December 2015, lead to the formation of Avangrid. Iberdrola owns 81.6% of the outstanding shares of Avangrid. Avangrid is headquartered in Orange, CT, with operations in 24 U.S. states. It is the third largest solar and wind generator in the United States, with $45 billion of assets. The company operates via two primary businesses, namely Avangrid Networks and Avangrid Renewables.

AGR sits at a Zacks Rank #3 (Hold), holds a Value Style Score of B, and has a VGM Score of B. Compared to the Utility - Electric Power industry's P/E of 17.6X, shares of Avangrid are trading at a forward P/E of 16X. AGR also has a PEG Ratio of 2.7, a Price/Cash Flow ratio of 7X, and a Price/Sales ratio of 1.6X.

Many value investors pay close attention to a company's earnings as well. For AGR, one analyst revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.01 to $2.24 per share for 2024. Per share AGR boasts an average earnings surprise of 18.2%.

AGR should be on investors' short lists because of its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores.

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