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Are Investors Undervaluing Shell (SHEL) Right Now?
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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.
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 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.
Shell (SHEL - Free Report) is a stock many investors are watching right now. SHEL is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 5.17. This compares to its industry's average Forward P/E of 7.23. Over the past 52 weeks, SHEL's Forward P/E has been as high as 9.46 and as low as 4.40, with a median of 6.43.
We should also highlight that SHEL has a P/B ratio of 1.06. 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 1.59. Within the past 52 weeks, SHEL's P/B has been as high as 1.31 and as low as 0.91, with a median of 1.06.
Finally, investors should note that SHEL has a P/CF ratio of 3.31. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 5.69. SHEL's P/CF has been as high as 5.17 and as low as 2.95, with a median of 4.23, all within the past year.
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 1.59 compared to its industry's price-to-book ratio of 1.59. Over the past year, its P/B ratio has been as high as 1.61, as low as 0.80, with a median of 1.17.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Shell and Vista Oil & Gas are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SHEL and VIST feels like a great value stock at the moment.
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Are Investors Undervaluing Shell (SHEL) 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.
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 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.
Shell (SHEL - Free Report) is a stock many investors are watching right now. SHEL is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 5.17. This compares to its industry's average Forward P/E of 7.23. Over the past 52 weeks, SHEL's Forward P/E has been as high as 9.46 and as low as 4.40, with a median of 6.43.
We should also highlight that SHEL has a P/B ratio of 1.06. 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 1.59. Within the past 52 weeks, SHEL's P/B has been as high as 1.31 and as low as 0.91, with a median of 1.06.
Finally, investors should note that SHEL has a P/CF ratio of 3.31. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 5.69. SHEL's P/CF has been as high as 5.17 and as low as 2.95, with a median of 4.23, all within the past year.
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 1.59 compared to its industry's price-to-book ratio of 1.59. Over the past year, its P/B ratio has been as high as 1.61, as low as 0.80, with a median of 1.17.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Shell and Vista Oil & Gas are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SHEL and VIST feels like a great value stock at the moment.