Back to top

Image: Bigstock

Is Repsol (REPYY) a Great Value Stock Right Now?

Read MoreHide Full Article

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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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.

Repsol (REPYY - Free Report) is a stock many investors are watching right now. REPYY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 4.08, while its industry has an average P/E of 6.53. Over the last 12 months, REPYY's Forward P/E has been as high as 8.90 and as low as 3.95, with a median of 5.55.

Investors should also note that REPYY holds a PEG ratio of 0.49. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. REPYY's industry has an average PEG of 0.51 right now. Over the past 52 weeks, REPYY's PEG has been as high as 1.22 and as low as 0.11, with a median of 0.18.

Investors should also recognize that REPYY has a P/B ratio of 0.82. The P/B ratio pits a stock's market value against 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 1.22. Over the past 12 months, REPYY's P/B has been as high as 0.96 and as low as 0.63, with a median of 0.74.

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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. REPYY has a P/S ratio of 0.35. This compares to its industry's average P/S of 0.61.

Finally, investors should note that REPYY has a P/CF ratio of 3.52. 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. This stock's P/CF looks attractive against its industry's average P/CF of 5.30. Over the past 52 weeks, REPYY's P/CF has been as high as 438.53 and as low as 3.17, with a median of 4.56.

Shell (SHEL - Free Report) may be another strong Oil and Gas - Integrated - International stock to add to your shortlist. SHEL is a # 2 (Buy) stock with a Value grade of A.

Shares of Shell are currently trading at a forward earnings multiple of 5.28 and a PEG ratio of 0.65 compared to its industry's P/E and PEG ratios of 6.53 and 0.51, respectively.

Over the last 12 months, SHEL's P/E has been as high as 9.46, as low as 5.18, with a median of 7.16, and its PEG ratio has been as high as 2.37, as low as 0.64, with a median of 1.79.

Shell also has a P/B ratio of 1.10 compared to its industry's price-to-book ratio of 1.22. Over the past year, its P/B ratio has been as high as 1.31, as low as 0.85, with a median of 1.08.

These are just a handful of the figures considered in Repsol and Shell's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that REPYY and SHEL is an impressive value stock right now.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Repsol SA (REPYY) - free report >>

Shell PLC Unsponsored ADR (SHEL) - free report >>

Published in