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Are Investors Undervaluing Delek US Holdings (DK) 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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. 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.
One company value investors might notice is Delek US Holdings (DK - Free Report) . DK is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 5.22 right now. For comparison, its industry sports an average P/E of 6.03. Over the past 52 weeks, DK's Forward P/E has been as high as 129.51 and as low as -120.80, with a median of 9.98.
Another valuation metric that we should highlight is DK's P/B ratio of 1.61. The P/B ratio pits a stock's market value against 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 2.05. Over the past year, DK's P/B has been as high as 3.12 and as low as 1.11, with a median of 1.40.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. DK has a P/S ratio of 0.12. This compares to its industry's average P/S of 0.31.
Finally, investors should note that DK has a P/CF ratio of 3.90. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 5.03. Over the past 52 weeks, DK's P/CF has been as high as 126.69 and as low as -16.26, with a median of 18.61.
Investors could also keep in mind Phillips 66 (PSX - Free Report) , an Oil and Gas - Refining and Marketing stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Shares of Phillips 66 currently holds a Forward P/E ratio of 7.48, and its PEG ratio is 0.61. In comparison, its industry sports average P/E and PEG ratios of 6.03 and 0.22.
Over the past year, PSX's P/E has been as high as 19.08, as low as 6.41, with a median of 10.77; its PEG ratio has been as high as 2.40, as low as 0.50, with a median of 0.29 during the same time period.
Phillips 66 sports a P/B ratio of 1.82 as well; this compares to its industry's price-to-book ratio of 2.05. In the past 52 weeks, PSX's P/B has been as high as 2.40, as low as 1.37, with a median of 1.70.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Delek US Holdings and Phillips 66 are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DK and PSX feels like a great value stock at the moment.
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Are Investors Undervaluing Delek US Holdings (DK) 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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. 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.
One company value investors might notice is Delek US Holdings (DK - Free Report) . DK is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 5.22 right now. For comparison, its industry sports an average P/E of 6.03. Over the past 52 weeks, DK's Forward P/E has been as high as 129.51 and as low as -120.80, with a median of 9.98.
Another valuation metric that we should highlight is DK's P/B ratio of 1.61. The P/B ratio pits a stock's market value against 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 2.05. Over the past year, DK's P/B has been as high as 3.12 and as low as 1.11, with a median of 1.40.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. DK has a P/S ratio of 0.12. This compares to its industry's average P/S of 0.31.
Finally, investors should note that DK has a P/CF ratio of 3.90. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 5.03. Over the past 52 weeks, DK's P/CF has been as high as 126.69 and as low as -16.26, with a median of 18.61.
Investors could also keep in mind Phillips 66 (PSX - Free Report) , an Oil and Gas - Refining and Marketing stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Shares of Phillips 66 currently holds a Forward P/E ratio of 7.48, and its PEG ratio is 0.61. In comparison, its industry sports average P/E and PEG ratios of 6.03 and 0.22.
Over the past year, PSX's P/E has been as high as 19.08, as low as 6.41, with a median of 10.77; its PEG ratio has been as high as 2.40, as low as 0.50, with a median of 0.29 during the same time period.
Phillips 66 sports a P/B ratio of 1.82 as well; this compares to its industry's price-to-book ratio of 2.05. In the past 52 weeks, PSX's P/B has been as high as 2.40, as low as 1.37, with a median of 1.70.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Delek US Holdings and Phillips 66 are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DK and PSX feels like a great value stock at the moment.