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Are Investors Undervaluing Gazprom Neft OAO (GZPFY) Right Now?

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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, 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.

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.

Gazprom Neft OAO is a stock many investors are watching right now. GZPFY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.

Another valuation metric that we should highlight is GZPFY's P/B ratio of 0.71. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 0.74. GZPFY's P/B has been as high as 0.79 and as low as 0.53, with a median of 0.68, over the past year.

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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. GZPFY has a P/S ratio of 0.8. This compares to its industry's average P/S of 0.81.

These are only a few of the key metrics included in Gazprom Neft OAO'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, GZPFY looks like an impressive value stock at the moment.

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