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Is Murphy USA (MUSA) a Great Value Stock Right Now?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

Murphy USA (MUSA - Free Report) is a stock many investors are watching right now. MUSA is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 13.96, which compares to its industry's average of 34.17. MUSA's Forward P/E has been as high as 25.62 and as low as 13.62, with a median of 19.01, all within the past year.

MUSA is also sporting a PEG ratio of 2.06. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. MUSA's PEG compares to its industry's average PEG of 3.09. MUSA's PEG has been as high as 6.41 and as low as 1.98, with a median of 4.83, all within the past year.

These are only a few of the key metrics included in Murphy USA'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, MUSA looks like an impressive value stock at the moment.


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