Why This 1 Value Stock Could Be a Great Addition to Your Portfolio

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.

Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.

Why Investors Should Pay Attention to This Value Stock

Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most discounted stocks.

MDU Resources (MDU)

MDU Resources Group, Inc., a Bismarck, ND based company, was founded in 1924. Post the spinoff of Knife River, it turned into a utility natural gas distribution company. It provides value-added natural resource products and related services that are essential for energy transportation and regulated energy delivery services to its customers.

MDU is a Zacks Rank #2 (Buy) stock, with a Value Style Score of B and VGM Score of A. Shares are currently trading at a forward P/E of 17.5X for the current fiscal year compared to the Utility - Gas Distribution industry's P/E 15.8X. Additionally, MDU has a PEG Ratio of 2.7 and a Price/Cash Flow ratio of 8.8X. Value investors should also note MDU's Price/Sales ratio of 1X.

Value investors don't just pay attention to a company's valuation ratios; positive earnings play a crucial role, too. One analyst revised their earnings estimate upwards in the last 60 days for fiscal 2025. The Zacks Consensus Estimate has increased $0 to $0.95. MDU has an average earnings surprise of 1.3%.

Investors should take the time to consider MDU for their portfolios due to its solid Zacks Ranks, notable earnings and valuation metrics, and impressive Value and VGM Style Scores.

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MDU Resources Group, Inc. (MDU) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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