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Should Value Investors Buy OMV (OMVJF) Stock?

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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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 stock to keep an eye on is OMV . OMVJF is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 4.02. This compares to its industry's average Forward P/E of 7.38. Over the past 52 weeks, OMVJF's Forward P/E has been as high as 6.07 and as low as 3.11, with a median of 4.15.

Another notable valuation metric for OMVJF is its P/B ratio of 0.60. 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. OMVJF's current P/B looks attractive when compared to its industry's average P/B of 1.44. Over the past 12 months, OMVJF's P/B has been as high as 0.87 and as low as 0.46, with a median of 0.59.

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. OMVJF has a P/S ratio of 0.28. This compares to its industry's average P/S of 0.51.

Finally, investors will want to recognize that OMVJF has a P/CF ratio of 1.99. 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. OMVJF's current P/CF looks attractive when compared to its industry's average P/CF of 5.79. OMVJF's P/CF has been as high as 3.13 and as low as 1.52, with a median of 2.10, 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 sports a P/B ratio of 1.55 as well; this compares to its industry's price-to-book ratio of 1.44. In the past 52 weeks, VIST's P/B has been as high as 1.68, as low as 0.80, with a median of 1.21.

These figures are just a handful of the metrics value investors tend to look at, but they help show that OMV and Vista Oil & Gas are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, OMVJF and VIST feels like a great value stock at the moment.


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