Should Value Investors Buy YPF Sociedad Anonima (YPF) Stock?

YPF

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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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.

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 value investors might notice is YPF Sociedad Anonima (YPF - Free Report) . YPF is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A.

Investors should also recognize that YPF has a P/B ratio of 0.93. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. YPF's current P/B looks attractive when compared to its industry's average P/B of 1.50. Over the past 12 months, YPF's P/B has been as high as 0.95 and as low as 0.35, with a median of 0.53.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. YPF has a P/S ratio of 0.5. This compares to its industry's average P/S of 0.63.

Finally, our model also underscores that YPF has a P/CF ratio of 4.29. 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. YPF's current P/CF looks attractive when compared to its industry's average P/CF of 5.39. Over the past 52 weeks, YPF's P/CF has been as high as 4.34 and as low as 0.79, with a median of 1.17.

These are only a few of the key metrics included in YPF Sociedad Anonima's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, YPF looks like an impressive value stock at the moment.

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