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Are Investors Undervaluing Imperial Oil (IMO) Right Now?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
One company to watch right now is Imperial Oil (IMO - Free Report) . IMO is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
Investors should also note that IMO holds a PEG ratio of 0.28. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. IMO's PEG compares to its industry's average PEG of 0.71. IMO's PEG has been as high as 0.41 and as low as 0.21, with a median of 0.28, all within the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. IMO has a P/S ratio of 0.73. This compares to its industry's average P/S of 0.75.
If you're looking for another solid Oil and Gas - Integrated - Canadian value stock, take a look at Suncor Energy (SU - Free Report) . SU is a # 2 (Buy) stock with a Value score of A.
Shares of Suncor Energy currently holds a Forward P/E ratio of 6.36, and its PEG ratio is 0.71. In comparison, its industry sports average P/E and PEG ratios of 6.37 and 0.71.
Over the last 12 months, SU's P/E has been as high as 11.72, as low as 4.69, with a median of 7.44, and its PEG ratio has been as high as 3.91, as low as 0.51, with a median of 0.73.
Furthermore, Suncor Energy holds a P/B ratio of 1.50 and its industry's price-to-book ratio is 1.77. SU's P/B has been as high as 2, as low as 1.16, with a median of 1.43 over the past 12 months.
These are only a few of the key metrics included in Imperial Oil and Suncor Energy strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, IMO and SU look like an impressive value stock at the moment.
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Are Investors Undervaluing Imperial Oil (IMO) Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
One company to watch right now is Imperial Oil (IMO - Free Report) . IMO is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
Investors should also note that IMO holds a PEG ratio of 0.28. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. IMO's PEG compares to its industry's average PEG of 0.71. IMO's PEG has been as high as 0.41 and as low as 0.21, with a median of 0.28, all within the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. IMO has a P/S ratio of 0.73. This compares to its industry's average P/S of 0.75.
If you're looking for another solid Oil and Gas - Integrated - Canadian value stock, take a look at Suncor Energy (SU - Free Report) . SU is a # 2 (Buy) stock with a Value score of A.
Shares of Suncor Energy currently holds a Forward P/E ratio of 6.36, and its PEG ratio is 0.71. In comparison, its industry sports average P/E and PEG ratios of 6.37 and 0.71.
Over the last 12 months, SU's P/E has been as high as 11.72, as low as 4.69, with a median of 7.44, and its PEG ratio has been as high as 3.91, as low as 0.51, with a median of 0.73.
Furthermore, Suncor Energy holds a P/B ratio of 1.50 and its industry's price-to-book ratio is 1.77. SU's P/B has been as high as 2, as low as 1.16, with a median of 1.43 over the past 12 months.
These are only a few of the key metrics included in Imperial Oil and Suncor Energy strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, IMO and SU look like an impressive value stock at the moment.