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.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 value investors might notice is Shell (SHEL - Free Report) . SHEL is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 4.95. This compares to its industry's average Forward P/E of 5.99. Over the last 12 months, SHEL's Forward P/E has been as high as 9.46 and as low as 4.48, with a median of 7.
Investors should also recognize that SHEL has a P/B ratio of 1.03. The P/B ratio is used to compare a stock's market value with 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 1.20. Over the past 12 months, SHEL's P/B has been as high as 1.31 and as low as 0.87, with a median of 1.08.
Finally, we should also recognize that SHEL has a P/CF ratio of 3.60. 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 5.41. Within the past 12 months, SHEL's P/CF has been as high as 5.60 and as low as 3.16, with a median of 4.38.
Another great Oil and Gas - Integrated - International stock you could consider is Vista Oil & Gas (VIST - Free Report) , which is a # 1 (Strong Buy) stock with a Value Score of A.
Furthermore, Vista Oil & Gas holds a P/B ratio of 1.15 and its industry's price-to-book ratio is 1.20. VIST's P/B has been as high as 1.46, as low as 0.69, with a median of 1.01 over the past 12 months.
Value investors will likely look at more than just these metrics, but the above data helps show that Shell and Vista Oil & Gas are likely undervalued currently. And when considering the strength of its earnings outlook, SHEL and VIST sticks out as one of the market's strongest value stocks.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Is Shell (SHEL) a Great Value Stock 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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 value investors might notice is Shell (SHEL - Free Report) . SHEL is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 4.95. This compares to its industry's average Forward P/E of 5.99. Over the last 12 months, SHEL's Forward P/E has been as high as 9.46 and as low as 4.48, with a median of 7.
Investors should also recognize that SHEL has a P/B ratio of 1.03. The P/B ratio is used to compare a stock's market value with 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 1.20. Over the past 12 months, SHEL's P/B has been as high as 1.31 and as low as 0.87, with a median of 1.08.
Finally, we should also recognize that SHEL has a P/CF ratio of 3.60. 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 5.41. Within the past 12 months, SHEL's P/CF has been as high as 5.60 and as low as 3.16, with a median of 4.38.
Another great Oil and Gas - Integrated - International stock you could consider is Vista Oil & Gas (VIST - Free Report) , which is a # 1 (Strong Buy) stock with a Value Score of A.
Furthermore, Vista Oil & Gas holds a P/B ratio of 1.15 and its industry's price-to-book ratio is 1.20. VIST's P/B has been as high as 1.46, as low as 0.69, with a median of 1.01 over the past 12 months.
Value investors will likely look at more than just these metrics, but the above data helps show that Shell and Vista Oil & Gas are likely undervalued currently. And when considering the strength of its earnings outlook, SHEL and VIST sticks out as one of the market's strongest value stocks.