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Are Investors Undervaluing OMV (OMVJF) 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.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One stock to keep an eye on is OMV (OMVJF - Free Report) . OMVJF is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock holds a P/E ratio of 3.92, while its industry has an average P/E of 6.88. Over the past year, OMVJF's Forward P/E has been as high as 6.07 and as low as 3.11, with a median of 4.12.

Another notable valuation metric for OMVJF is its P/B ratio of 0.58. Investors use the P/B ratio to look at a stock's market value versus 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 1.34. OMVJF's P/B has been as high as 0.87 and as low as 0.46, with a median of 0.59, over the past year.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. OMVJF has a P/S ratio of 0.28. This compares to its industry's average P/S of 0.53.

Finally, our model also underscores that OMVJF has a P/CF ratio of 1.93. 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. OMVJF's current P/CF looks attractive when compared to its industry's average P/CF of 5.37. Over the past 52 weeks, OMVJF's P/CF has been as high as 3.13 and as low as 1.52, with a median of 2.09.

Repsol (REPYY - Free Report) may be another strong Oil and Gas - Integrated - International stock to add to your shortlist. REPYY is a # 2 (Buy) stock with a Value grade of A.

Shares of Repsol currently holds a Forward P/E ratio of 4.02, and its PEG ratio is 0.51. In comparison, its industry sports average P/E and PEG ratios of 6.88 and 0.48.


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