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Are Investors Undervaluing These Oils-Energy Stocks Right Now?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
One stock to keep an eye on is Eni (E - Free Report) . E is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 7.62, while its industry has an average P/E of 9.09. Over the past 52 weeks, E's Forward P/E has been as high as 19.57 and as low as 7.11, with a median of 10.09.
Another valuation metric that we should highlight is E's P/B ratio of 1.17. 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 solid versus its industry's average P/B of 1.31. E's P/B has been as high as 1.17 and as low as 0.82, with a median of 0.95, 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. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. E has a P/S ratio of 0.73. This compares to its industry's average P/S of 0.78.
Finally, investors should note that E has a P/CF ratio of 5.92. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 8.51. Within the past 12 months, E's P/CF has been as high as 17.21 and as low as -29.36, with a median of 5.61.
If you're looking for another solid Oil and Gas - Integrated - International value stock, take a look at OMV (OMVJF - Free Report) . OMVJF is a # 1 (Strong Buy) stock with a Value score of A.
Additionally, OMV has a P/B ratio of 0.81 while its industry's price-to-book ratio sits at 1.31. For OMVJF, this valuation metric has been as high as 0.88, as low as 0.63, with a median of 0.71 over the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Eni and OMV are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, E and OMVJF feels like a great value stock at the moment.
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Are Investors Undervaluing These Oils-Energy Stocks Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
One stock to keep an eye on is Eni (E - Free Report) . E is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 7.62, while its industry has an average P/E of 9.09. Over the past 52 weeks, E's Forward P/E has been as high as 19.57 and as low as 7.11, with a median of 10.09.
Another valuation metric that we should highlight is E's P/B ratio of 1.17. 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 solid versus its industry's average P/B of 1.31. E's P/B has been as high as 1.17 and as low as 0.82, with a median of 0.95, 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. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. E has a P/S ratio of 0.73. This compares to its industry's average P/S of 0.78.
Finally, investors should note that E has a P/CF ratio of 5.92. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 8.51. Within the past 12 months, E's P/CF has been as high as 17.21 and as low as -29.36, with a median of 5.61.
If you're looking for another solid Oil and Gas - Integrated - International value stock, take a look at OMV (OMVJF - Free Report) . OMVJF is a # 1 (Strong Buy) stock with a Value score of A.
Additionally, OMV has a P/B ratio of 0.81 while its industry's price-to-book ratio sits at 1.31. For OMVJF, this valuation metric has been as high as 0.88, as low as 0.63, with a median of 0.71 over the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Eni and OMV are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, E and OMVJF feels like a great value stock at the moment.