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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
BP (BP - Free Report) is a stock many investors are watching right now. BP is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 4.22 right now. For comparison, its industry sports an average P/E of 5.86. Over the last 12 months, BP's Forward P/E has been as high as 8.62 and as low as 3.94, with a median of 6.47.
Investors should also recognize that BP has a P/B ratio of 1.16. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.27. Within the past 52 weeks, BP's P/B has been as high as 1.42 and as low as 0.84, with a median of 1.09.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. BP has a P/S ratio of 0.5. This compares to its industry's average P/S of 0.57.
Investors could also keep in mind Repsol (REPYY - Free Report) , an Oil and Gas - Integrated - International stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Repsol is trading at a forward earnings multiple of 3.17 at the moment, with a PEG ratio of 0.38. This compares to its industry's average P/E of 5.86 and average PEG ratio of 0.46.
Over the past year, REPYY's P/E has been as high as 7.40, as low as 3.12, with a median of 5.37; its PEG ratio has been as high as 1.22, as low as 0.11, with a median of 0.53 during the same time period.
Furthermore, Repsol holds a P/B ratio of 0.68 and its industry's price-to-book ratio is 1.27. REPYY's P/B has been as high as 0.96, as low as 0.64, with a median of 0.74 over the past 12 months.
Value investors will likely look at more than just these metrics, but the above data helps show that BP and Repsol are likely undervalued currently. And when considering the strength of its earnings outlook, BP and REPYY sticks out as one of the market's strongest value stocks.
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Are Investors Undervaluing BP (BP) Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
BP (BP - Free Report) is a stock many investors are watching right now. BP is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 4.22 right now. For comparison, its industry sports an average P/E of 5.86. Over the last 12 months, BP's Forward P/E has been as high as 8.62 and as low as 3.94, with a median of 6.47.
Investors should also recognize that BP has a P/B ratio of 1.16. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.27. Within the past 52 weeks, BP's P/B has been as high as 1.42 and as low as 0.84, with a median of 1.09.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. BP has a P/S ratio of 0.5. This compares to its industry's average P/S of 0.57.
Investors could also keep in mind Repsol (REPYY - Free Report) , an Oil and Gas - Integrated - International stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Repsol is trading at a forward earnings multiple of 3.17 at the moment, with a PEG ratio of 0.38. This compares to its industry's average P/E of 5.86 and average PEG ratio of 0.46.
Over the past year, REPYY's P/E has been as high as 7.40, as low as 3.12, with a median of 5.37; its PEG ratio has been as high as 1.22, as low as 0.11, with a median of 0.53 during the same time period.
Furthermore, Repsol holds a P/B ratio of 0.68 and its industry's price-to-book ratio is 1.27. REPYY's P/B has been as high as 0.96, as low as 0.64, with a median of 0.74 over the past 12 months.
Value investors will likely look at more than just these metrics, but the above data helps show that BP and Repsol are likely undervalued currently. And when considering the strength of its earnings outlook, BP and REPYY sticks out as one of the market's strongest value stocks.