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RDS.A or CVX: Which Is the Better Value Stock Right Now?
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Investors with an interest in Oil and Gas - Integrated - International stocks have likely encountered both Shell Oil and Chevron (CVX - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Currently, Shell Oil has a Zacks Rank of #2 (Buy), while Chevron has a Zacks Rank of #3 (Hold). This means that RDS.A's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
RDS.A currently has a forward P/E ratio of 10.73, while CVX has a forward P/E of 20.76. We also note that RDS.A has a PEG ratio of 2.68. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CVX currently has a PEG ratio of 4.15.
Another notable valuation metric for RDS.A is its P/B ratio of 0.98. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, CVX has a P/B of 1.48.
These metrics, and several others, help RDS.A earn a Value grade of A, while CVX has been given a Value grade of C.
RDS.A is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that RDS.A is likely the superior value option right now.
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RDS.A or CVX: Which Is the Better Value Stock Right Now?
Investors with an interest in Oil and Gas - Integrated - International stocks have likely encountered both Shell Oil and Chevron (CVX - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Currently, Shell Oil has a Zacks Rank of #2 (Buy), while Chevron has a Zacks Rank of #3 (Hold). This means that RDS.A's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
RDS.A currently has a forward P/E ratio of 10.73, while CVX has a forward P/E of 20.76. We also note that RDS.A has a PEG ratio of 2.68. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CVX currently has a PEG ratio of 4.15.
Another notable valuation metric for RDS.A is its P/B ratio of 0.98. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, CVX has a P/B of 1.48.
These metrics, and several others, help RDS.A earn a Value grade of A, while CVX has been given a Value grade of C.
RDS.A is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that RDS.A is likely the superior value option right now.