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Should Value Investors Buy Adams Resources & Energy (AE) Stock?
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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.
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 Adams Resources & Energy (AE - Free Report) . 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 1.01. The P/B ratio pits a stock's market value against 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 2.06. Within the past 52 weeks, 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 will want to recognize that AE has a P/CF ratio of 4.92. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 5.17. Within the past 12 months, AE's P/CF has been as high as 5.43 and as low as 3.29, with a median of 4.23.
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 6.36 at the moment, with a PEG ratio of 1.06. This compares to its industry's average P/E of 5.26 and average PEG ratio of 0.47.
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 10.57, and its PEG ratio has been as high as 12.91, as low as 0.80, with a median of 1.76.
Valero Energy also has a P/B ratio of 2.24 compared to its industry's price-to-book ratio of 2.06. Over the past year, its P/B ratio has been as high as 2.90, as low as 1.47, with a median of 1.90.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Adams Resources & Energy and Valero Energy are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AE and VLO feels like a great value stock at the moment.
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Should Value Investors Buy Adams Resources & Energy (AE) Stock?
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.
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 Adams Resources & Energy (AE - Free Report) . 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 1.01. The P/B ratio pits a stock's market value against 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 2.06. Within the past 52 weeks, 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 will want to recognize that AE has a P/CF ratio of 4.92. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 5.17. Within the past 12 months, AE's P/CF has been as high as 5.43 and as low as 3.29, with a median of 4.23.
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 6.36 at the moment, with a PEG ratio of 1.06. This compares to its industry's average P/E of 5.26 and average PEG ratio of 0.47.
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 10.57, and its PEG ratio has been as high as 12.91, as low as 0.80, with a median of 1.76.
Valero Energy also has a P/B ratio of 2.24 compared to its industry's price-to-book ratio of 2.06. Over the past year, its P/B ratio has been as high as 2.90, as low as 1.47, with a median of 1.90.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Adams Resources & Energy and Valero Energy are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AE and VLO feels like a great value stock at the moment.