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Are Investors Undervaluing Phillips 66 (PSX) Right Now?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 value investors might notice is Phillips 66 (PSX - Free Report) . PSX is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
We also note that PSX holds a PEG ratio of 0.35. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. PSX's PEG compares to its industry's average PEG of 0.58. Within the past year, PSX's PEG has been as high as 1.06 and as low as 0.30, with a median of 0.58.
Finally, we should also recognize that PSX has a P/CF ratio of 3.68. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. PSX's current P/CF looks attractive when compared to its industry's average P/CF of 4.23. Over the past 52 weeks, PSX's P/CF has been as high as 11.91 and as low as 3.23, with a median of 4.45.
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.
Shares of Valero Energy are currently trading at a forward earnings multiple of 5.73 and a PEG ratio of 0.96 compared to its industry's P/E and PEG ratios of 5.82 and 0.58, respectively.
Over the past year, VLO's P/E has been as high as 12.62, as low as 4.41, with a median of 6.29; its PEG ratio has been as high as 2.10, as low as 0.73, with a median of 0.58 during the same time period.
Additionally, Valero Energy has a P/B ratio of 1.86 while its industry's price-to-book ratio sits at 1.25. For VLO, this valuation metric has been as high as 2.90, as low as 1.70, with a median of 2.01 over the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Phillips 66 and Valero Energy are likely undervalued currently. And when considering the strength of its earnings outlook, PSX and VLO sticks out as one of the market's strongest value stocks.
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Are Investors Undervaluing Phillips 66 (PSX) Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 value investors might notice is Phillips 66 (PSX - Free Report) . PSX is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
We also note that PSX holds a PEG ratio of 0.35. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. PSX's PEG compares to its industry's average PEG of 0.58. Within the past year, PSX's PEG has been as high as 1.06 and as low as 0.30, with a median of 0.58.
Finally, we should also recognize that PSX has a P/CF ratio of 3.68. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. PSX's current P/CF looks attractive when compared to its industry's average P/CF of 4.23. Over the past 52 weeks, PSX's P/CF has been as high as 11.91 and as low as 3.23, with a median of 4.45.
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.
Shares of Valero Energy are currently trading at a forward earnings multiple of 5.73 and a PEG ratio of 0.96 compared to its industry's P/E and PEG ratios of 5.82 and 0.58, respectively.
Over the past year, VLO's P/E has been as high as 12.62, as low as 4.41, with a median of 6.29; its PEG ratio has been as high as 2.10, as low as 0.73, with a median of 0.58 during the same time period.
Additionally, Valero Energy has a P/B ratio of 1.86 while its industry's price-to-book ratio sits at 1.25. For VLO, this valuation metric has been as high as 2.90, as low as 1.70, with a median of 2.01 over the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Phillips 66 and Valero Energy are likely undervalued currently. And when considering the strength of its earnings outlook, PSX and VLO sticks out as one of the market's strongest value stocks.