Zacks.com featured highlights include JinkoSolar EnerSys, KT, Brookfield Infrastructure and Gates Industrial

For Immediate ReleaseChicago, IL – January 10, 2025 – Stocks in this week’s article are JinkoSolar Holding Co., Ltd. JKS, EnerSys ENS, KT Corp. KT, Brookfield Infrastructure Partners L.P. BIP and Gates Industrial Corp. plc GTES.5 Value Stocks with Enticing EV-to-EBITDA Ratios to Own NowInvestors are typically fixated on the price-to-earnings (P/E) strategy while seeking stocks trading at attractive prices. This straightforward, easy-to-calculate ratio is the most preferred among all the valuation metrics in the investment toolkit for working out the fair market value of a stock. But even this ubiquitously used valuation metric is not without its pitfalls.While P/E is by far the most popular equity valuation ratio, a more complicated metric called EV-to-EBITDA does a better job of valuing a firm. Often viewed as a better substitute to P/E, this ratio offers a clearer picture of a company's valuation and its earnings potential.JinkoSolar Holding Co., Ltd., EnerSys, KT Corp., Brookfield Infrastructure Partners L.P. and Gates Industrial Corp. plc are some stocks with attractive EV-to-EBITDA ratios.Is EV-to-EBITDA a Better Substitute to P/E?EV-to-EBITDA is essentially the enterprise value (EV) of a stock divided by its earnings before interest, taxes, depreciation and amortization (EBITDA). EV is the sum of a company's market capitalization, debt and preferred stock minus cash and cash equivalents. EBITDA, the other component, gives a better idea of a company's profitability as it removes the impact of non-cash expenses like depreciation and amortization that reduce net earnings. It is also often used as a proxy for cash flows.The lower the EV-to-EBITDA ratio, the more appealing it is. A low EV-to-EBITDA ratio indicates that a stock is potentially undervalued. EV-to-EBITDA takes into account the debt on a company's balance sheet, which the P/E ratio does not. For this reason, EV-to-EBITDA is generally used to value potential acquisition targets as it shows the amount of debt the acquirer has to assume. Stocks boasting a low EV-to-EBITDA multiple could be seen as attractive takeover candidates.Another shortcoming of P/E is that it can't be used to value a loss-making firm. A company's earnings are also subject to accounting estimates and management manipulation. On the other hand, EV-to-EBITDA is difficult to manipulate and can also be used to value loss-making but EBITDA-positive companies. EV-to-EBITDA is also a useful yardstick for measuring the value of firms that are highly leveraged and have a high degree of depreciation. It can also be used to compare companies with different levels of debt.But EV-to-EBITDA has its limitations, too. The ratio varies across industries (a high-growth industry typically has a higher multiple and vice versa) and is usually not appropriate while comparing stocks in different industries, given their diverse capital requirements.A strategy solely based on EV-to-EBITDA might not yield the desired results. You can club it with the other major ratios in your stock-investing toolbox, such as price-to-book (P/B), P/E and price-to-sales (P/S) to screen value stocks.Here are our five picks out of the eight stocks that passed the screen:JinkoSolar is one of the leading solar module manufacturers, distributing its solar products to a diversified international utility, commercial and residential customer base globally. This Zacks Rank #1 stock has a Value Score of A.JinkoSolar has an expected year-over-year earnings growth rate of 1,125% for 2025. JKS' earnings beat the Zacks Consensus Estimate in three of the trailing four quarters. In this time frame, it has delivered an earnings surprise of roughly 529.3%, on average.EnerSys engages in the manufacturing, marketing and distribution of various industrial batteries. This Zacks Rank #2 stock has a Value Score of A. You can see the complete list of today's Zacks #1 Rank stocks here.EnerSys has an expected earnings growth rate of 11.7% for fiscal 2025. The consensus estimate for ENS' fiscal 2025 earnings has been revised 5.3% higher over the last 60 days.KT is the biggest telecommunications operator in the Republic of Korea. This Zacks Rank #2 stock has a Value Score of A.KT has an expected earnings growth rate of 198.8% for 2025. The Zacks Consensus Estimate for KT's 2025 earnings has been revised 1.6% upward over the past 60 days.Brookfield Infrastructure Partners owns and operates high-quality, long-life assets in the utilities, transport, midstream and data businesses in North and South America, Asia Pacific and Europe. This Zacks Rank #2 stock has a Value Score of A.Brookfield Infrastructure has an expected year-over-year earnings growth rate of 10.9% for 2025. The Zacks Consensus Estimate for BIP's 2025 earnings has been revised 1.8% upward over the last 60 days.Gates Industrial is a manufacturer engineered power transmission and fluid power solutions. This Zacks Rank #2 stock has a Value Score of B.Gates Industrial has an expected earnings growth rate of 14.9% for 2025. The Zacks Consensus Estimate for GTES' 2025 earnings has been revised 2% upward over the past 60 days.You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.Click here to sign up for a free trial to the Research Wizard today.For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2394125/5-value-stocks-with-enticing-ev-to-ebitda-ratios-to-own-nowDisclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.About Screen of the WeekZacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine.  But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.Strong Stocks that Should Be in the NewsMany are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. 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Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 228 positions with double- and triple-digit gains in 2023 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report JinkoSolar Holding Company Limited (JKS): Free Stock Analysis Report Brookfield Infrastructure Partners LP (BIP): Free Stock Analysis Report KT Corporation (KT): Free Stock Analysis Report Enersys (ENS): Free Stock Analysis Report Gates Industrial Corporation PLC (GTES): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks