Are Investors Undervaluing YPF Sociedad Anonima (YPF) Right Now?

YPF

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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 company to watch right now is YPF Sociedad Anonima (YPF - Free Report) . YPF is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 3.13. This compares to its industry's average Forward P/E of 8.58. Over the past year, YPF's Forward P/E has been as high as 4.48 and as low as 1.55, with a median of 2.54.

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. YPF has a P/S ratio of 0.24. This compares to its industry's average P/S of 0.55.

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

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