Why DTE Energy (DTE) is a Top Value Stock for the Long-Term

Zacks
07 Feb

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.

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

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.

DTE Energy (DTE)

Detroit, MI-based DTE Energy Company (DTE), incorporated in 1995, is a diversified energy company that develops and manages energy-related businesses and services nationwide. The company’s two largest regulated subsidiaries are DTE Electric Company and DTE Gas Company.

DTE 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 17.1X, shares of DTE Energy are trading at a forward P/E of 17X. DTE also has a PEG Ratio of 2.3, a Price/Cash Flow ratio of 8.9X, and a Price/Sales ratio of 2X.

A company's earnings performance is important for value investors as well. For fiscal 2024, two analysts revised their earnings estimate higher in the last 60 days for DTE, while the Zacks Consensus Estimate has increased $0.01 to $6.77 per share. DTE also holds an average earnings surprise of 8.9%.

With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding DTE to their portfolios.

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Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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