We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Are Investors Undervaluing PBF Energy (PBF) 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, 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.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is PBF Energy (PBF - Free Report) . PBF is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 3.81, which compares to its industry's average of 5.68. Over the past 52 weeks, PBF's Forward P/E has been as high as 48.60 and as low as -103.69, with a median of 7.05.
We should also highlight that PBF has a P/B ratio of 1.06. 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. PBF's current P/B looks attractive when compared to its industry's average P/B of 1.90. Over the past 12 months, PBF's P/B has been as high as 2.09 and as low as 0.40, with a median of 0.82.
Finally, our model also underscores that PBF has a P/CF ratio of 2.20. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. PBF's P/CF compares to its industry's average P/CF of 5.48. Over the past 52 weeks, PBF's P/CF has been as high as 7.13 and as low as -12, with a median of 4.07.
Investors could also keep in mind Valero Energy (VLO - Free Report) , an Oil and Gas - Refining and Marketing stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.
Shares of Valero Energy are currently trading at a forward earnings multiple of 5.48 and a PEG ratio of 0.91 compared to its industry's P/E and PEG ratios of 5.68 and 0.21, respectively.
Over the last 12 months, VLO's P/E has been as high as 57.89, as low as 5.48, with a median of 12.19, and its PEG ratio has been as high as 12.91, as low as 0.91, with a median of 2.15.
Furthermore, Valero Energy holds a P/B ratio of 1.99 and its industry's price-to-book ratio is 1.90. VLO's P/B has been as high as 2.90, as low as 1.32, with a median of 1.74 over the past 12 months.
These figures are just a handful of the metrics value investors tend to look at, but they help show that PBF Energy and Valero Energy are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, PBF and VLO feels like a great value stock at the moment.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Are Investors Undervaluing PBF Energy (PBF) Right Now?
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, 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.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is PBF Energy (PBF - Free Report) . PBF is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 3.81, which compares to its industry's average of 5.68. Over the past 52 weeks, PBF's Forward P/E has been as high as 48.60 and as low as -103.69, with a median of 7.05.
We should also highlight that PBF has a P/B ratio of 1.06. 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. PBF's current P/B looks attractive when compared to its industry's average P/B of 1.90. Over the past 12 months, PBF's P/B has been as high as 2.09 and as low as 0.40, with a median of 0.82.
Finally, our model also underscores that PBF has a P/CF ratio of 2.20. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. PBF's P/CF compares to its industry's average P/CF of 5.48. Over the past 52 weeks, PBF's P/CF has been as high as 7.13 and as low as -12, with a median of 4.07.
Investors could also keep in mind Valero Energy (VLO - Free Report) , an Oil and Gas - Refining and Marketing stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.
Shares of Valero Energy are currently trading at a forward earnings multiple of 5.48 and a PEG ratio of 0.91 compared to its industry's P/E and PEG ratios of 5.68 and 0.21, respectively.
Over the last 12 months, VLO's P/E has been as high as 57.89, as low as 5.48, with a median of 12.19, and its PEG ratio has been as high as 12.91, as low as 0.91, with a median of 2.15.
Furthermore, Valero Energy holds a P/B ratio of 1.99 and its industry's price-to-book ratio is 1.90. VLO's P/B has been as high as 2.90, as low as 1.32, with a median of 1.74 over the past 12 months.
These figures are just a handful of the metrics value investors tend to look at, but they help show that PBF Energy and Valero Energy are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, PBF and VLO feels like a great value stock at the moment.