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Is it time to get back into the refiners? HollyFrontier Corporation (HFC - Free Report) saw product crack spreads narrow in the fourth quarter but they're still historically favorable. This Zacks #2 Rank (Buy) is still dirt cheap, with a forward P/E of just 7.1.

HollyFrontier is an independent oil refiner that produces gasoline, diesel fuel, and jet fuel.

It operates 5 refineries and sells its refined products principally in the Southwest U.S., the Rocky Mountains, the Pacific Northwest and other nearby Plains states.

2012 Zacks Consensus Estimates Rise

The company is upbeat about 2012.

"Looking forward, the differentials between inland and coastal crudes are fairly robust, which should contribute favorably to our first quarter results. Further, we believe that operational synergies and increased asset scale gained during the merger will help us to extend our record of providing consistent returns and increasing shareholder value while maintaining a strong balance sheet," said Mike Jennings, CEO on Feb 28.

In the last 30 days, analysts have gotten more bullish about HollyFrontier's 2012 prospects.

The 2012 Zacks Consensus Estimate has risen to $4.93 from $4.15 per share in that time with 10 estimates out of 13 moving higher and just 1 going lower.

However, that is still 25% below last year's earnings of $6.54 which included record crack spreads. HollyFrontier is also competing against a high standard as 2011 was the most profitable in the company's history.

Still Very Cheap

Shares sold off in late 2011 when investors freaked out about the drop in crack spreads. But shares have staged a big rally in 2012.

But HollyFrontier is still a cheap stock. In addition to a single digit P/E, the company has a price-to-book ratio of just 1.3.

A P/B under 3.0 usually indicates there is value.

It also has a low price-to-sales ratio, which is another indicator of value. HollyFrontier has a P/S ratio of just 0.5. A P/S ratio under 1.0 can mean a company is undervalued.

HollyFrontier is still an attractive value play, even with the fall in earnings. Shareholders are also rewarded with a dividend, yielding 1.1%.

This Week's Value Zacks Rank Buy Stocks

How do we know the economy is improving? RV sales are up. Thor Industries, Inc. (THO) is expected to grow earnings by the double digits in fiscal 2012. Shares have been on a tear in 2012 but this Zacks #1 Rank (Strong Buy) still has some value with a price-to-book ratio of just 2.4. Read the full article.

Barnes Group Inc. (B) continues to fly under the radar even as it grows earnings by the double digits. Not too shabby for a 154-year old company. This Zacks #1 Rank (Strong Buy) is also a value stock, with a price-to-book ratio of just 2.1. Read the full article.

Jarden Corporation (JAH) reported record fourth quarter sales and earnings but the good times aren't over yet. This Zacks #1 Rank (Strong Buy) is expected to grow earnings by the double digits again in 2012. It also has the distinction of being a value stock, with a forward P/E of just 9.7. Read the full article.

TravelCenters of America LLC (TA) is seeing improvement in the economy as more truckers stop at its centers. This Zacks #1 Rank (Strong Buy), however, is dirt cheap. It has a forward P/E of just 7.8. Read the full article.

Tracey Ryniec is the Value Stock Strategist for She is also the Editor of the Turnaround Trader and Insider Trader services. You can follow her on twitter at @TraceyRyniec.

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