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REPYY or BP: Which Is the Better Value Stock Right Now?

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Investors with an interest in Oil and Gas - Integrated - International stocks have likely encountered both Repsol SA (REPYY - Free Report) and BP (BP - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Currently, both Repsol SA and BP are holding a Zacks Rank of # 1 (Strong Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is only part of the picture for value investors.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

REPYY currently has a forward P/E ratio of 6.97, while BP has a forward P/E of 8.07. We also note that REPYY has a PEG ratio of 0.19. 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. BP currently has a PEG ratio of 0.51.

Another notable valuation metric for REPYY is its P/B ratio of 0.70. 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. For comparison, BP has a P/B of 0.94.

These metrics, and several others, help REPYY earn a Value grade of B, while BP has been given a Value grade of C.

Both REPYY and BP are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that REPYY is the superior value option right now.


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