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Are Investors Undervaluing Adams Resources & Energy (AE) Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

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.

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 Adams Resources & Energy (AE - Free Report) . AE is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.

Another valuation metric that we should highlight is AE's P/B ratio of 0.92. 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 stock's P/B looks attractive against its industry's average P/B of 2.10. Over the past year, AE's P/B has been as high as 1.06 and as low as 0.71, with a median of 0.83.

Finally, investors should note that AE has a P/CF ratio of 4.71. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 5.15. AE's P/CF has been as high as 5.43 and as low as 3.29, with a median of 4.21, all within the past year.

Another great Oil and Gas - Refining and Marketing stock you could consider is PBF Energy (PBF - Free Report) , which is a # 1 (Strong Buy) stock with a Value Score of A.

Furthermore, PBF Energy holds a P/B ratio of 1.16 and its industry's price-to-book ratio is 2.10. PBF's P/B has been as high as 2.09, as low as 0.58, with a median of 0.99 over the past 12 months.

These are just a handful of the figures considered in Adams Resources & Energy and PBF Energy'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 AE and PBF is an impressive value stock right now.


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