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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.
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 OMV (OMVJF - Free Report) . OMVJF is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 3.34, which compares to its industry's average of 6.43. Over the past 52 weeks, OMVJF's Forward P/E has been as high as 6.69 and as low as 3.16, with a median of 5.04.
Investors should also recognize that OMVJF has a P/B ratio of 0.52. 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 1.30. Within the past 52 weeks, OMVJF's P/B has been as high as 0.87 and as low as 0.49, with a median of 0.67.
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 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 0.26. This compares to its industry's average P/S of 0.49.
Finally, investors will want to recognize that OMVJF has a P/CF ratio of 1.83. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. OMVJF's P/CF compares to its industry's average P/CF of 4.89. Over the past year, OMVJF's P/CF has been as high as 3.13 and as low as 1.73, with a median of 2.45.
If you're looking for another solid Oil and Gas - Integrated - International value stock, take a look at Shell (SHEL - Free Report) . SHEL is a # 2 (Buy) stock with a Value score of A.
Shares of Shell are currently trading at a forward earnings multiple of 5.14 and a PEG ratio of 0.56 compared to its industry's P/E and PEG ratios of 6.43 and 0.48, respectively.
SHEL's price-to-earnings ratio has been as high as 9.46 and as low as 4.48, with a median of 6.86, while its PEG ratio has been as high as 2.37 and as low as 0.53, with a median of 1.68, all within the past year.
Shell sports a P/B ratio of 1.08 as well; this compares to its industry's price-to-book ratio of 1.30. In the past 52 weeks, SHEL's P/B has been as high as 1.31, as low as 0.90, with a median of 1.08.
These are only a few of the key metrics included in OMV and Shell strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, OMVJF and SHEL look like an impressive value stock at the moment.
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Are Investors Undervaluing OMV (OMVJF) 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 OMV (OMVJF - Free Report) . OMVJF is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 3.34, which compares to its industry's average of 6.43. Over the past 52 weeks, OMVJF's Forward P/E has been as high as 6.69 and as low as 3.16, with a median of 5.04.
Investors should also recognize that OMVJF has a P/B ratio of 0.52. 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 1.30. Within the past 52 weeks, OMVJF's P/B has been as high as 0.87 and as low as 0.49, with a median of 0.67.
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 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 0.26. This compares to its industry's average P/S of 0.49.
Finally, investors will want to recognize that OMVJF has a P/CF ratio of 1.83. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. OMVJF's P/CF compares to its industry's average P/CF of 4.89. Over the past year, OMVJF's P/CF has been as high as 3.13 and as low as 1.73, with a median of 2.45.
If you're looking for another solid Oil and Gas - Integrated - International value stock, take a look at Shell (SHEL - Free Report) . SHEL is a # 2 (Buy) stock with a Value score of A.
Shares of Shell are currently trading at a forward earnings multiple of 5.14 and a PEG ratio of 0.56 compared to its industry's P/E and PEG ratios of 6.43 and 0.48, respectively.
SHEL's price-to-earnings ratio has been as high as 9.46 and as low as 4.48, with a median of 6.86, while its PEG ratio has been as high as 2.37 and as low as 0.53, with a median of 1.68, all within the past year.
Shell sports a P/B ratio of 1.08 as well; this compares to its industry's price-to-book ratio of 1.30. In the past 52 weeks, SHEL's P/B has been as high as 1.31, as low as 0.90, with a median of 1.08.
These are only a few of the key metrics included in OMV and Shell strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, OMVJF and SHEL look like an impressive value stock at the moment.