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Should Value Investors Buy Adams Resources & Energy (AE) Stock?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 an A grade for Value.

Investors should also recognize that AE has a P/B ratio of 1.02. The P/B is a method of comparing a stock's market value to 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 2.01. Over the past 12 months, AE's P/B has been as high as 1.06 and as low as 0.73, with a median of 0.85.

Finally, we should also recognize that AE has a P/CF ratio of 4.94. 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. AE's P/CF compares to its industry's average P/CF of 5.05. AE's P/CF has been as high as 5.43 and as low as 3.37, with a median of 4.28, all within the past year.

Par Pacific (PARR - Free Report) may be another strong Oil and Gas - Refining and Marketing stock to add to your shortlist. PARR is a # 1 (Strong Buy) stock with a Value grade of A.

Par Pacific also has a P/B ratio of 2.26 compared to its industry's price-to-book ratio of 2.01. Over the past year, its P/B ratio has been as high as 9.70, as low as 1.81, with a median of 3.48.

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


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Adams Resources & Energy, Inc. (AE) - free report >>

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