Should Value Investors Buy Delek US Holdings (DK) Stock?

DK PBF

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, 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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.

One company to watch right now is Delek US Holdings (DK - Free Report) . DK is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.

Investors should also recognize that DK has a P/B ratio of 1.44. 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 solid versus its industry's average P/B of 1.98. Within the past 52 weeks, DK's P/B has been as high as 1.90 and as low as 1.17, with a median of 1.50.

Finally, investors will want to recognize that DK has a P/CF ratio of 4.11. 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. DK's P/CF compares to its industry's average P/CF of 5.15. Within the past 12 months, DK's P/CF has been as high as 7.53 and as low as 2.14, with a median of 3.33.

If you're looking for another solid Oil and Gas - Refining and Marketing value stock, take a look at PBF Energy (PBF - Free Report) . PBF is a # 2 (Buy) stock with a Value score of A.

Furthermore, PBF Energy holds a P/B ratio of 0.78 and its industry's price-to-book ratio is 1.98. PBF's P/B has been as high as 1.24, as low as 0.75, with a median of 0.97 over the past 12 months.

These are only a few of the key metrics included in Delek US Holdings and PBF Energy strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, DK and PBF look like an impressive value stock at the moment.

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