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Is Valero Energy (VLO) a Great Value Stock Right Now?
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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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 value investors might notice is Valero Energy (VLO - Free Report) . VLO is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. VLO has a P/S ratio of 0.3. This compares to its industry's average P/S of 0.32.
Finally, investors should note that VLO has a P/CF ratio of 4.55. 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. VLO's current P/CF looks attractive when compared to its industry's average P/CF of 5.34. VLO's P/CF has been as high as 15.65 and as low as 3.51, with a median of 9.19, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Valero Energy is likely undervalued currently. And when considering the strength of its earnings outlook, VLO sticks out at as one of the market's strongest value stocks.
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Is Valero Energy (VLO) a Great Value Stock Right Now?
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 value investors might notice is Valero Energy (VLO - Free Report) . VLO is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. VLO has a P/S ratio of 0.3. This compares to its industry's average P/S of 0.32.
Finally, investors should note that VLO has a P/CF ratio of 4.55. 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. VLO's current P/CF looks attractive when compared to its industry's average P/CF of 5.34. VLO's P/CF has been as high as 15.65 and as low as 3.51, with a median of 9.19, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Valero Energy is likely undervalued currently. And when considering the strength of its earnings outlook, VLO sticks out at as one of the market's strongest value stocks.