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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, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 stock to keep an eye on is Phillips 66 (PSX - Free Report) . PSX is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
PSX is also sporting a PEG ratio of 0.64. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. PSX's PEG compares to its industry's average PEG of 0.69. Within the past year, PSX's PEG has been as high as 2.40 and as low as 0.48, with a median of 0.62.
Investors should also recognize that PSX has a P/B ratio of 2.04. 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 company's current P/B looks solid when compared to its industry's average P/B of 2.05. Over the past 12 months, PSX's P/B has been as high as 2.40 and as low as 1.45, with a median of 1.72.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. PSX has a P/S ratio of 0.33. This compares to its industry's average P/S of 0.34.
If you're looking for another solid Oil and Gas - Refining and Marketing value stock, take a look at Valero Energy (VLO - Free Report) . VLO is a # 2 (Buy) stock with a Value score of A.
Shares of Valero Energy currently holds a Forward P/E ratio of 6.19, and its PEG ratio is 1.03. In comparison, its industry sports average P/E and PEG ratios of 5.32 and 0.69.
Over the last 12 months, VLO's P/E has been as high as 57.89, as low as 4.79, with a median of 11.04, and its PEG ratio has been as high as 12.91, as low as 0.80, with a median of 1.85.
Valero Energy also has a P/B ratio of 2.09 compared to its industry's price-to-book ratio of 2.05. Over the past year, its P/B ratio has been as high as 2.90, as low as 1.47, with a median of 1.87.
Value investors will likely look at more than just these metrics, but the above data helps show that Phillips 66 and Valero Energy are likely undervalued currently. And when considering the strength of its earnings outlook, PSX and VLO sticks out as one of the market's strongest value stocks.
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Is Phillips 66 (PSX) Stock Undervalued 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, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 stock to keep an eye on is Phillips 66 (PSX - Free Report) . PSX is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
PSX is also sporting a PEG ratio of 0.64. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. PSX's PEG compares to its industry's average PEG of 0.69. Within the past year, PSX's PEG has been as high as 2.40 and as low as 0.48, with a median of 0.62.
Investors should also recognize that PSX has a P/B ratio of 2.04. 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 company's current P/B looks solid when compared to its industry's average P/B of 2.05. Over the past 12 months, PSX's P/B has been as high as 2.40 and as low as 1.45, with a median of 1.72.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. PSX has a P/S ratio of 0.33. This compares to its industry's average P/S of 0.34.
If you're looking for another solid Oil and Gas - Refining and Marketing value stock, take a look at Valero Energy (VLO - Free Report) . VLO is a # 2 (Buy) stock with a Value score of A.
Shares of Valero Energy currently holds a Forward P/E ratio of 6.19, and its PEG ratio is 1.03. In comparison, its industry sports average P/E and PEG ratios of 5.32 and 0.69.
Over the last 12 months, VLO's P/E has been as high as 57.89, as low as 4.79, with a median of 11.04, and its PEG ratio has been as high as 12.91, as low as 0.80, with a median of 1.85.
Valero Energy also has a P/B ratio of 2.09 compared to its industry's price-to-book ratio of 2.05. Over the past year, its P/B ratio has been as high as 2.90, as low as 1.47, with a median of 1.87.
Value investors will likely look at more than just these metrics, but the above data helps show that Phillips 66 and Valero Energy are likely undervalued currently. And when considering the strength of its earnings outlook, PSX and VLO sticks out as one of the market's strongest value stocks.