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Is Adams Resources & Energy (AE) Stock Undervalued 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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

Adams Resources & Energy (AE - Free Report) is a stock many investors are watching right now. AE is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.

Investors should also recognize that AE has a P/B ratio of 0.79. 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 attractive against its industry's average P/B of 1.87. AE's P/B has been as high as 1.06 and as low as 0.71, with a median of 0.83, over the past year.

Finally, investors will want to recognize that AE has a P/CF ratio of 4.05. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 4.60. AE's P/CF has been as high as 5.43 and as low as 3.29, with a median of 4.19, all within the past year.

If you're looking for another solid Oil and Gas - Refining and Marketing value stock, take a look at PBF Energy (PBF - Free Report) . PBF is a # 1 (Strong Buy) stock with a Value score of A.

Additionally, PBF Energy has a P/B ratio of 1.23 while its industry's price-to-book ratio sits at 1.87. For PBF, this valuation metric has been as high as 2.09, as low as 0.58, with a median of 0.96 over the past year.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Adams Resources & Energy and PBF Energy are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AE and PBF feels like a great value stock at the moment.


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