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Are Investors Undervaluing OMV (OMVJF) Right Now?

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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.

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.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company to watch right now is OMV (OMVJF - Free Report) . OMVJF is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 3.69, which compares to its industry's average of 7.18. Over the past 52 weeks, OMVJF's Forward P/E has been as high as 6.07 and as low as 3.11, with a median of 4.25.

We should also highlight that OMVJF has a P/B ratio of 0.53. 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 1.58. Within the past 52 weeks, OMVJF's P/B has been as high as 0.87 and as low as 0.46, with a median of 0.61.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. OMVJF has a P/S ratio of 0.25. This compares to its industry's average P/S of 0.52.

Finally, we should also recognize that OMVJF has a P/CF ratio of 1.76. 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 stock's P/CF looks attractive against its industry's average P/CF of 5.64. Over the past 52 weeks, OMVJF's P/CF has been as high as 3.13 and as low as 1.52, with a median of 2.18.

Investors could also keep in mind YPF Sociedad Anonima (YPF - Free Report) , an Oil and Gas - Integrated - International stock with a Zacks Rank of # 2 (Buy) and Value grade of A.

Furthermore, YPF Sociedad Anonima holds a P/B ratio of 0.30 and its industry's price-to-book ratio is 1.58. YPF's P/B has been as high as 0.31, as low as 0.11, with a median of 0.20 over the past 12 months.

These are just a handful of the figures considered in OMV and YPF Sociedad Anonima's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that OMVJF and YPF is an impressive value stock right now.


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