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Are Investors Undervaluing Delek US Holdings (DK) 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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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.
One stock to keep an eye on is Delek US Holdings (DK - Free Report) . DK is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
Another notable valuation metric for DK is its P/B ratio of 1.75. 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 1.99. DK's P/B has been as high as 3.12 and as low as 1.11, with a median of 1.45, over the past year.
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 0.32.
Finally, we should also recognize that DK has a P/CF ratio of 4.24. 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 5.18. Over the past 52 weeks, DK's P/CF has been as high as 106.01 and as low as 2.81, with a median of 15.26.
Investors could also keep in mind Valero Energy (VLO - Free Report) , an Oil and Gas - Refining and Marketing stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Valero Energy is trading at a forward earnings multiple of 6.61 at the moment, with a PEG ratio of 1.10. This compares to its industry's average P/E of 5.30 and average PEG ratio of 0.48.
VLO's price-to-earnings ratio has been as high as 57.89 and as low as 4.79, with a median of 10.70, while its PEG ratio has been as high as 12.91 and as low as 0.80, with a median of 1.78, all within the past year.
Valero Energy also has a P/B ratio of 2.15 compared to its industry's price-to-book ratio of 1.99. Over the past year, its P/B ratio has been as high as 2.90, as low as 1.47, with a median of 1.89.
These are just a handful of the figures considered in Delek US Holdings and Valero 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 DK and VLO is an impressive value stock right now.
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Are Investors Undervaluing Delek US Holdings (DK) Right Now?
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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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.
One stock to keep an eye on is Delek US Holdings (DK - Free Report) . DK is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
Another notable valuation metric for DK is its P/B ratio of 1.75. 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 1.99. DK's P/B has been as high as 3.12 and as low as 1.11, with a median of 1.45, over the past year.
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 0.32.
Finally, we should also recognize that DK has a P/CF ratio of 4.24. 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 5.18. Over the past 52 weeks, DK's P/CF has been as high as 106.01 and as low as 2.81, with a median of 15.26.
Investors could also keep in mind Valero Energy (VLO - Free Report) , an Oil and Gas - Refining and Marketing stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Valero Energy is trading at a forward earnings multiple of 6.61 at the moment, with a PEG ratio of 1.10. This compares to its industry's average P/E of 5.30 and average PEG ratio of 0.48.
VLO's price-to-earnings ratio has been as high as 57.89 and as low as 4.79, with a median of 10.70, while its PEG ratio has been as high as 12.91 and as low as 0.80, with a median of 1.78, all within the past year.
Valero Energy also has a P/B ratio of 2.15 compared to its industry's price-to-book ratio of 1.99. Over the past year, its P/B ratio has been as high as 2.90, as low as 1.47, with a median of 1.89.
These are just a handful of the figures considered in Delek US Holdings and Valero 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 DK and VLO is an impressive value stock right now.