Is BP (BP) a Great Value Stock Right Now?

BP REPYY

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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company to watch right now is BP (BP - Free Report) . BP is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 4.97 right now. For comparison, its industry sports an average P/E of 7.17. Over the last 12 months, BP's Forward P/E has been as high as 11.04 and as low as 4.90, with a median of 7.35.

Another notable valuation metric for BP is its P/B ratio of 1.04. 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 company's current P/B looks solid when compared to its industry's average P/B of 1.35. Over the past 12 months, BP's P/B has been as high as 1.21 and as low as 0.83, with a median of 1.02.

Finally, we should also recognize that BP has a P/CF ratio of 4.27. 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. BP's current P/CF looks attractive when compared to its industry's average P/CF of 5.57. Within the past 12 months, BP's P/CF has been as high as 33.40 and as low as 3.96, with a median of 6.70.

Another great Oil and Gas - Integrated - International stock you could consider is Repsol (REPYY - Free Report) , which is a # 1 (Strong Buy) stock with a Value Score of A.

Repsol is trading at a forward earnings multiple of 4.91 at the moment, with a PEG ratio of 1.04. This compares to its industry's average P/E of 7.17 and average PEG ratio of 0.64.

Over the last 12 months, REPYY's P/E has been as high as 9.89, as low as 4.43, with a median of 6.39, and its PEG ratio has been as high as 1.22, as low as 0.11, with a median of 0.18.

Furthermore, Repsol holds a P/B ratio of 0.84 and its industry's price-to-book ratio is 1.35. REPYY's P/B has been as high as 0.86, as low as 0.63, with a median of 0.74 over the past 12 months.

Value investors will likely look at more than just these metrics, but the above data helps show that BP and Repsol are likely undervalued currently. And when considering the strength of its earnings outlook, BP and REPYY sticks out as one of the market's strongest value stocks.

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