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Are Investors Undervaluing These Oils-Energy Stocks 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, 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
Sasol (SSL - Free Report) is a stock many investors are watching right now. SSL is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 5.37. This compares to its industry's average Forward P/E of 8.71. Over the past year, SSL's Forward P/E has been as high as 12.41 and as low as 3.62, with a median of 4.79.
Investors should also note that SSL holds a PEG ratio of 0.33. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. SSL's industry has an average PEG of 0.78 right now. Over the last 12 months, SSL's PEG has been as high as 0.96 and as low as 0.13, with a median of 0.30.
Investors should also recognize that SSL has a P/B ratio of 1.33. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. SSL's current P/B looks attractive when compared to its industry's average P/B of 1.45. Within the past 52 weeks, SSL's P/B has been as high as 1.43 and as low as 0.82, with a median of 1.03.
If you're looking for another solid Oil and Gas - Integrated - International value stock, take a look at Vista Oil & Gas (VIST - Free Report) . VIST is a # 1 (Strong Buy) stock with a Value score of A.
Vista Oil & Gas also has a P/B ratio of 1.31 compared to its industry's price-to-book ratio of 1.45. Over the past year, its P/B ratio has been as high as 1.34, as low as 0.43, with a median of 0.77.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Sasol and Vista Oil & Gas are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SSL and VIST feels like a great value stock at the moment.
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Are Investors Undervaluing These Oils-Energy Stocks Right Now?
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, 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
Sasol (SSL - Free Report) is a stock many investors are watching right now. SSL is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 5.37. This compares to its industry's average Forward P/E of 8.71. Over the past year, SSL's Forward P/E has been as high as 12.41 and as low as 3.62, with a median of 4.79.
Investors should also note that SSL holds a PEG ratio of 0.33. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. SSL's industry has an average PEG of 0.78 right now. Over the last 12 months, SSL's PEG has been as high as 0.96 and as low as 0.13, with a median of 0.30.
Investors should also recognize that SSL has a P/B ratio of 1.33. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. SSL's current P/B looks attractive when compared to its industry's average P/B of 1.45. Within the past 52 weeks, SSL's P/B has been as high as 1.43 and as low as 0.82, with a median of 1.03.
If you're looking for another solid Oil and Gas - Integrated - International value stock, take a look at Vista Oil & Gas (VIST - Free Report) . VIST is a # 1 (Strong Buy) stock with a Value score of A.
Vista Oil & Gas also has a P/B ratio of 1.31 compared to its industry's price-to-book ratio of 1.45. Over the past year, its P/B ratio has been as high as 1.34, as low as 0.43, with a median of 0.77.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Sasol and Vista Oil & Gas are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SSL and VIST feels like a great value stock at the moment.