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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is Shell (SHEL - Free Report) . SHEL is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 4.66, which compares to its industry's average of 6.36. Over the last 12 months, SHEL's Forward P/E has been as high as 9.46 and as low as 4.40, with a median of 6.63.
Another valuation metric that we should highlight is SHEL's P/B ratio of 1.02. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.46. Over the past 12 months, SHEL's P/B has been as high as 1.31 and as low as 0.91, with a median of 1.08.
Finally, we should also recognize that SHEL has a P/CF ratio of 3.54. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. SHEL's P/CF compares to its industry's average P/CF of 5.12. Within the past 12 months, SHEL's P/CF has been as high as 5.60 and as low as 3.16, with a median of 4.33.
If you're looking for another solid Oil and Gas - Integrated - International value stock, take a look at Vista Oil & Gas (VIST - Free Report) . VIST is a # 1 (Strong Buy) stock with a Value score of A.
Vista Oil & Gas also has a P/B ratio of 1.56 compared to its industry's price-to-book ratio of 1.46. Over the past year, its P/B ratio has been as high as 1.56, as low as 0.80, with a median of 1.13.
These are only a few of the key metrics included in Shell and Vista Oil & Gas strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, SHEL and VIST look like an impressive value stock at the moment.
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Is Shell (SHEL) Stock Undervalued Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is Shell (SHEL - Free Report) . SHEL is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 4.66, which compares to its industry's average of 6.36. Over the last 12 months, SHEL's Forward P/E has been as high as 9.46 and as low as 4.40, with a median of 6.63.
Another valuation metric that we should highlight is SHEL's P/B ratio of 1.02. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.46. Over the past 12 months, SHEL's P/B has been as high as 1.31 and as low as 0.91, with a median of 1.08.
Finally, we should also recognize that SHEL has a P/CF ratio of 3.54. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. SHEL's P/CF compares to its industry's average P/CF of 5.12. Within the past 12 months, SHEL's P/CF has been as high as 5.60 and as low as 3.16, with a median of 4.33.
If you're looking for another solid Oil and Gas - Integrated - International value stock, take a look at Vista Oil & Gas (VIST - Free Report) . VIST is a # 1 (Strong Buy) stock with a Value score of A.
Vista Oil & Gas also has a P/B ratio of 1.56 compared to its industry's price-to-book ratio of 1.46. Over the past year, its P/B ratio has been as high as 1.56, as low as 0.80, with a median of 1.13.
These are only a few of the key metrics included in Shell and Vista Oil & Gas strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, SHEL and VIST look like an impressive value stock at the moment.