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Should Value Investors Buy Par Pacific (PARR) Stock?
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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.
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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
Par Pacific (PARR - Free Report) is a stock many investors are watching right now. PARR is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 4.66 right now. For comparison, its industry sports an average P/E of 5.29. Over the past year, PARR's Forward P/E has been as high as 44.68 and as low as -12.73, with a median of 11.82.
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. PARR has a P/S ratio of 0.18. This compares to its industry's average P/S of 0.29.
Finally, our model also underscores that PARR has a P/CF ratio of 3.27. 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. PARR's P/CF compares to its industry's average P/CF of 5.02. Within the past 12 months, PARR's P/CF has been as high as 81.73 and as low as -19.79, with a median of 3.83.
Phillips 66 (PSX - Free Report) may be another strong Oil and Gas - Refining and Marketing stock to add to your shortlist. PSX is a # 2 (Buy) stock with a Value grade of A.
Shares of Phillips 66 currently holds a Forward P/E ratio of 6.93, and its PEG ratio is 0.39. In comparison, its industry sports average P/E and PEG ratios of 5.29 and 0.48.
PSX's Forward P/E has been as high as 19.08 and as low as 5.86, with a median of 8.74. During the same time period, its PEG ratio has been as high as 1.06, as low as 0.37, with a median of 0.63.
Additionally, Phillips 66 has a P/B ratio of 1.43 while its industry's price-to-book ratio sits at 2. For PSX, this valuation metric has been as high as 2.40, as low as 1.15, with a median of 1.69 over the past year.
These are only a few of the key metrics included in Par Pacific and Phillips 66 strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, PARR and PSX look like an impressive value stock at the moment.
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Should Value Investors Buy Par Pacific (PARR) Stock?
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.
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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
Par Pacific (PARR - Free Report) is a stock many investors are watching right now. PARR is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 4.66 right now. For comparison, its industry sports an average P/E of 5.29. Over the past year, PARR's Forward P/E has been as high as 44.68 and as low as -12.73, with a median of 11.82.
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. PARR has a P/S ratio of 0.18. This compares to its industry's average P/S of 0.29.
Finally, our model also underscores that PARR has a P/CF ratio of 3.27. 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. PARR's P/CF compares to its industry's average P/CF of 5.02. Within the past 12 months, PARR's P/CF has been as high as 81.73 and as low as -19.79, with a median of 3.83.
Phillips 66 (PSX - Free Report) may be another strong Oil and Gas - Refining and Marketing stock to add to your shortlist. PSX is a # 2 (Buy) stock with a Value grade of A.
Shares of Phillips 66 currently holds a Forward P/E ratio of 6.93, and its PEG ratio is 0.39. In comparison, its industry sports average P/E and PEG ratios of 5.29 and 0.48.
PSX's Forward P/E has been as high as 19.08 and as low as 5.86, with a median of 8.74. During the same time period, its PEG ratio has been as high as 1.06, as low as 0.37, with a median of 0.63.
Additionally, Phillips 66 has a P/B ratio of 1.43 while its industry's price-to-book ratio sits at 2. For PSX, this valuation metric has been as high as 2.40, as low as 1.15, with a median of 1.69 over the past year.
These are only a few of the key metrics included in Par Pacific and Phillips 66 strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, PARR and PSX look like an impressive value stock at the moment.