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Strategies & Market Trends : Value Investing

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To: NikhilJog who wrote (45947)12/14/2011 11:23:58 AM
From: E_K_S  Read Replies (2) of 78704
 
National Fuel Gas Co. (NFG)

Stock to me is selling at it's higher end when compared to it's peers. Analysts avg estimate for 2012 is at $2.95/share. That puts their forward PE around 19. That's pretty high since peers PE are at 15.

(From Schwab Research)

EPS Estimates: NFG reported non-GAAP fourth quarter 2011 earnings of $0.45, meeting the consensus estimate of the 8 analysts covering the company. In the year leading up to the announcement, the consensus estimate had risen by $0.07. For the coming quarter, analysts estimate NFG will earn $0.84 per share, an increase of 20.54% over the prior year first quarter results.

First Quarter Earnings Announcement Expected: Earnings will tentatively be announced 02/02/2012. With 8 analysts covering NFG, the consensus EPS estimate is $0.84, and the high and low estimates are $1.05 and $0.74, respectively.

As an example you can buy AGL Resources, Inc. Common Stoc (NYSE: AGL) and/or UGI Corporation Common Stock (NYSE: UGI) at a forward PE around 10, both pay a higher dividend and both sell at a substantial discount to their peers (perhaps as much as 29%).

finance.yahoo.com

National Fuel Gas Company Commo (NYSE: NFG) would approach my value zone if it fell to $38.00/share - $40.00/share area. Their debt profile is very good but (to me) not worth their premium price. Even at this price the forward PE would be 13 and their dividend yield would be 3.5%. At that price I might nibble at a few shares. Stock is priced 30% too high to be a potential value buy for me.

EKS
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