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Should Value Investors Buy These Oils-Energy Stocks?

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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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

OMV (OMVJF - Free Report) is a stock many investors are watching right now. OMVJF is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 5.62, while its industry has an average P/E of 9.12. Over the last 12 months, OMVJF's Forward P/E has been as high as 10.29 and as low as 5.04, with a median of 6.68.

Another notable valuation metric for OMVJF is its P/B ratio of 0.81. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.32. Over the past 12 months, OMVJF's P/B has been as high as 0.88 and as low as 0.63, with a median of 0.71.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. OMVJF has a P/S ratio of 0.65. This compares to its industry's average P/S of 0.77.

Finally, investors will want to recognize that OMVJF has a P/CF ratio of 2.98. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. OMVJF's P/CF compares to its industry's average P/CF of 8.57. Over the past year, OMVJF's P/CF has been as high as 3.37 and as low as 2.46, with a median of 2.75.

Another great Oil and Gas - Integrated - International stock you could consider is Shell PLC Unsponsored ADR (SHEL - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.

Shell PLC Unsponsored ADR is trading at a forward earnings multiple of 7.83 at the moment, with a PEG ratio of 1.96. This compares to its industry's average P/E of 9.12 and average PEG ratio of 0.71.


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