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.
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.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is
Par Pacific (. PARR is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 4.34, which compares to its industry's average of 6.12. Over the past year, PARR's Forward P/E has been as high as 30.94 and as low as 3.01, with a median of 8.51. PARR Quick Quote PARR - Free Report)
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. PARR has a P/S ratio of 0.23. This compares to its industry's average P/S of 0.29.
Finally, investors should note that PARR has a P/CF ratio of 3.69. 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. This stock's P/CF looks attractive against its industry's average P/CF of 4.33. Over the past year, PARR's P/CF has been as high as 5.86 and as low as -19.79, with a median of 3.56.
Another great Oil and Gas - Refining and Marketing stock you could consider is
Valero Energy (, which is a # 2 (Buy) stock with a Value Score of A. VLO Quick Quote VLO - Free Report)
Valero Energy is trading at a forward earnings multiple of 6.09 at the moment, with a PEG ratio of 1.01. This compares to its industry's average P/E of 6.12 and average PEG ratio of 0.61.
VLO's price-to-earnings ratio has been as high as 12.62 and as low as 4.41, with a median of 6.26, while its PEG ratio has been as high as 2.10 and as low as 0.73, with a median of 1.04, all within the past year.
Valero Energy sports a P/B ratio of 1.97 as well; this compares to its industry's price-to-book ratio of 1.28. In the past 52 weeks, VLO's P/B has been as high as 2.90, as low as 1.70, with a median of 2.
These are just a handful of the figures considered in Par Pacific and Valero Energy'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 PARR and VLO is an impressive value stock right now.