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Should Value Investors Buy PBF Energy (PBF) Stock?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is PBF Energy (PBF - Free Report) . PBF is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with P/E ratio of 4.01 right now. For comparison, its industry sports an average P/E of 5.36. PBF's Forward P/E has been as high as 48.60 and as low as -4.11, with a median of 6.86, all within the past year.
Another valuation metric that we should highlight is PBF's P/B ratio of 1.21. 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. PBF's current P/B looks attractive when compared to its industry's average P/B of 2.10. Over the past 12 months, PBF's P/B has been as high as 2.09 and as low as 0.58, with a median of 1.03.
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. PBF has a P/S ratio of 0.13. This compares to its industry's average P/S of 0.32.
Finally, we should also recognize that PBF has a P/CF ratio of 2.09. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. PBF's current P/CF looks attractive when compared to its industry's average P/CF of 5.27. Over the past 52 weeks, PBF's P/CF has been as high as 7.13 and as low as 1.53, with a median of 3.10.
If you're looking for another solid Oil and Gas - Refining and Marketing value stock, take a look at Phillips 66 (PSX - Free Report) . PSX is a # 1 (Strong Buy) stock with a Value score of A.
Shares of Phillips 66 currently holds a Forward P/E ratio of 7.37, and its PEG ratio is 0.43. In comparison, its industry sports average P/E and PEG ratios of 5.36 and 0.48.
PSX's Forward P/E has been as high as 19.08 and as low as 5.86, with a median of 10.20. During the same time period, its PEG ratio has been as high as 1.06, as low as 0.43, with a median of 0.63.
Furthermore, Phillips 66 holds a P/B ratio of 1.58 and its industry's price-to-book ratio is 2.10. PSX's P/B has been as high as 2.40, as low as 1.15, with a median of 1.69 over the past 12 months.
These are just a handful of the figures considered in PBF Energy and Phillips 66's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that PBF and PSX is an impressive value stock right now.
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Should Value Investors Buy PBF Energy (PBF) Stock?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is PBF Energy (PBF - Free Report) . PBF is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with P/E ratio of 4.01 right now. For comparison, its industry sports an average P/E of 5.36. PBF's Forward P/E has been as high as 48.60 and as low as -4.11, with a median of 6.86, all within the past year.
Another valuation metric that we should highlight is PBF's P/B ratio of 1.21. 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. PBF's current P/B looks attractive when compared to its industry's average P/B of 2.10. Over the past 12 months, PBF's P/B has been as high as 2.09 and as low as 0.58, with a median of 1.03.
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. PBF has a P/S ratio of 0.13. This compares to its industry's average P/S of 0.32.
Finally, we should also recognize that PBF has a P/CF ratio of 2.09. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. PBF's current P/CF looks attractive when compared to its industry's average P/CF of 5.27. Over the past 52 weeks, PBF's P/CF has been as high as 7.13 and as low as 1.53, with a median of 3.10.
If you're looking for another solid Oil and Gas - Refining and Marketing value stock, take a look at Phillips 66 (PSX - Free Report) . PSX is a # 1 (Strong Buy) stock with a Value score of A.
Shares of Phillips 66 currently holds a Forward P/E ratio of 7.37, and its PEG ratio is 0.43. In comparison, its industry sports average P/E and PEG ratios of 5.36 and 0.48.
PSX's Forward P/E has been as high as 19.08 and as low as 5.86, with a median of 10.20. During the same time period, its PEG ratio has been as high as 1.06, as low as 0.43, with a median of 0.63.
Furthermore, Phillips 66 holds a P/B ratio of 1.58 and its industry's price-to-book ratio is 2.10. PSX's P/B has been as high as 2.40, as low as 1.15, with a median of 1.69 over the past 12 months.
These are just a handful of the figures considered in PBF Energy and Phillips 66's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that PBF and PSX is an impressive value stock right now.