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Is Valero Energy (VLO) Stock Undervalued Right Now?
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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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
Valero Energy (VLO - Free Report) is a stock many investors are watching right now. VLO is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 5.55, while its industry has an average P/E of 6.01. Over the last 12 months, VLO's Forward P/E has been as high as 12.62 and as low as 4.41, with a median of 6.24.
Finally, investors should note that VLO has a P/CF ratio of 3.39. 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. VLO's P/CF compares to its industry's average P/CF of 4.25. Over the past year, VLO's P/CF has been as high as 11.91 and as low as 3.26, with a median of 4.33.
These are only a few of the key metrics included in Valero Energy's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, VLO looks like an impressive value stock at the moment.
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Is Valero Energy (VLO) Stock Undervalued Right Now?
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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
Valero Energy (VLO - Free Report) is a stock many investors are watching right now. VLO is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 5.55, while its industry has an average P/E of 6.01. Over the last 12 months, VLO's Forward P/E has been as high as 12.62 and as low as 4.41, with a median of 6.24.
Finally, investors should note that VLO has a P/CF ratio of 3.39. 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. VLO's P/CF compares to its industry's average P/CF of 4.25. Over the past year, VLO's P/CF has been as high as 11.91 and as low as 3.26, with a median of 4.33.
These are only a few of the key metrics included in Valero Energy's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, VLO looks like an impressive value stock at the moment.